Analyst Charles Zhu of LifeSci Capital maintained a Buy rating on Nuvalent, boosting the price target to $142.00.
TipRanks Black Friday Sale
- Claim 60% off TipRanks Premium for the data-backed insights and research tools you need to invest with confidence.
- Subscribe to TipRanks' Smart Investor Picks and see our data in action through our high-performing model portfolio - now also 60% off
Charles Zhu has given his Buy rating due to a combination of factors that highlight Nuvalent’s promising outlook. The Phase 2 ALKOVE-1 data for neladalkib demonstrates a best-in-class profile, particularly in ALK+ NSCLC, with impressive durability that exceeded investor expectations. This durability, along with a strong overall response rate (ORR) and duration of response (DOR), positions neladalkib favorably against existing treatments like lorlatinib.
Despite a slight decrease in ORR compared to previous data, this is attributed to a different patient composition rather than a decline in efficacy. The drug’s performance in post-lorlatinib settings, where there is no standard-of-care, further underscores its potential. Additionally, the manageable safety profile, with low discontinuation and dose reduction rates, supports a positive outlook. These factors collectively suggest a robust sales potential and a de-risked approval path, justifying the Buy rating.
In another report released today, H.C. Wainwright also maintained a Buy rating on the stock with a $155.00 price target.