Analyst Soumit Roy from JonesTrading maintained a Buy rating on Day One Biopharmaceuticals (DAWN – Research Report) and decreased the price target to $26.00 from $30.00.
Soumit Roy has given his Buy rating due to a combination of factors that highlight Day One Biopharmaceuticals’ potential for growth. Despite a slight dip in first-quarter revenue, attributed to seasonal factors, the company is expected to see consistent growth with its drug Ojemda throughout 2025. As the drug gains more acceptance among conservative doctors, its penetration in the market is anticipated to improve.
Additionally, the company’s strong cash position of $473 million, coupled with its best-in-class commercial product and experienced management team, presents a compelling buying opportunity. The stock is currently at its lowest valuation in over 30 months, making it an attractive investment with a holding period of at least 12 months. Furthermore, the ongoing development of their pipeline, including the ‘301 project, could provide significant value inflection points in the future.
In another report released today, Needham also maintained a Buy rating on the stock with a $27.00 price target.