Daiichi Sankyo’s Promising Future: Buy Rating Backed by ADC Advancements and Strategic Growth Initiatives

Bernstein analyst Miki Sogi has maintained their bullish stance on DSKYF stock, giving a Buy rating on April 25.

Miki Sogi has given his Buy rating due to a combination of factors that highlight Daiichi Sankyo’s promising future prospects. The company’s ongoing development in Antibody-Drug Conjugates (ADC), particularly with Enhertu, is progressing well, supported by strong interim data for its potential use in first-line HER2-positive breast cancer. This advancement, along with the initiation of Phase 3 trials for HER2-positive non-small cell lung cancer in combination with Keytruda, suggests significant commercial opportunities.
Miki Sogi also notes the company’s strategic approach in pursuing smaller indications without compromising the return on investment for Enhertu. The confidence in the development of I-DXd for metastatic castration-resistant prostate cancer, backed by positive Phase 2 trial data, further supports the Buy rating. Additionally, the recent JPY200 billion share buyback indicates management’s belief in the undervaluation of their stock, reinforcing the company’s strong corporate value and growth potential.

In another report released on April 25, Citi also maintained a Buy rating on the stock with a Yen6,600.00 price target.