TD Cowen analyst Tara Bancroft downgraded the rating on Day One Biopharmaceuticals to a Hold today, setting a price target of $21.50.
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Tara Bancroft has given his Hold rating due to a combination of factors related to Servier’s proposed $2.5 billion acquisition of Day One Biopharmaceuticals. The offer price of $21.50 per share reflects a roughly 68% premium to the pre-announcement close and an 86% premium to the volume-weighted average price, which he views as appropriately capturing the value of Ojemda, DAY301, and Emi-Le.
Given that the agreed purchase price is in line with his discounted cash flow valuation, Bancroft sees limited additional upside for the stock from current levels. With the transaction expected to close in the second quarter of 2026, he believes the risk/reward profile is now balanced, prompting the downgrade from Buy to Hold and aligning the price target with the acquisition price at $21.50.
In another report released today, JonesTrading also assigned a Hold rating to the stock with a $21.50 price target.