IDEAYA Biosciences: Buy Rating on Anticipated Success of Darovasertib Trial and Stock Appreciation Potential

In a report released today, Charles Zhu from LifeSci Capital maintained a Buy rating on IDEAYA Biosciences (IDYA – Research Report), with a price target of $58.00.

Charles Zhu has given his Buy rating due to a combination of factors that highlight the potential for IDEAYA Biosciences’ stock to appreciate. One of the primary reasons is the anticipated success of the Phase 2/3 trial evaluating darovasertib combined with crizotinib, which is expected to show a median progression-free survival (mPFS) exceeding 8.8 months. This trial is a significant catalyst for the company, and the current stock weakness presents a buying opportunity for investors.
Furthermore, Zhu’s analysis suggests that the market may be underestimating the potential positive outcomes of the trial, as previous single-arm Phase 2 results indicated a promising mPFS of approximately 7 months. The company’s management has indicated that they are on track to trigger the primary PFS analysis by early Q4, which supports the confidence in the trial’s success. Additionally, while overall survival (OS) data may not be fully available by the end of 2025, the Phase 2/3 PFS data and other supportive data points could enhance investor sentiment and reduce risks associated with full approval endpoints.

Zhu covers the Healthcare sector, focusing on stocks such as Merus, Protara Therapeutics, and IDEAYA Biosciences. According to TipRanks, Zhu has an average return of -13.2% and a 29.81% success rate on recommended stocks.

In another report released on May 6, RBC Capital also maintained a Buy rating on the stock with a $57.00 price target.