Analyst Charles Zhu from LifeSci Capital maintained a Buy rating on Nuvalent (NUVL – Research Report) and keeping the price target at $110.00.
Charles Zhu has given his Buy rating due to a combination of factors that highlight Nuvalent’s promising prospects in the oncology field. The initiation of the Phase 3 ALKAZAR trial for frontline ALK+ non-small cell lung cancer (NSCLC) marks a significant milestone, with recruitment now open and the potential for patient dosing to begin earlier than initially anticipated. This development suggests that the timelines for obtaining registration-enabling topline or interim data could be faster than investors expect, which is a positive indicator for the company’s future performance.
Moreover, Nuvalent has demonstrated an impressive enrollment pace in its previous trials, such as ALKOVE-1 and ARROS-1, surpassing industry benchmarks. If Nuvalent can replicate this success in the ALKAZAR trial, the company could achieve primary progression-free survival (PFS) analysis sooner than previously projected. This accelerated timeline, coupled with the company’s solid cash position and efficient trial execution, supports Zhu’s optimistic outlook and Buy rating for Nuvalent’s stock.