Analyst Andrew Berens from Leerink Partners maintained a Buy rating on Nuvalent (NUVL – Research Report) and increased the price target to $140.00 from $125.00.
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Andrew Berens has given his Buy rating due to a combination of factors that highlight the promising potential of Nuvalent’s zidesamtinib in the ROS1 inhibitor landscape. The drug has shown a best-in-class profile with exceptional durability and tolerability, which are critical attributes that have been challenging for other ROS1 agents to achieve. This positions zidesamtinib as a potential blockbuster across various lines of therapy for ROS1+ tumors.
Moreover, zidesamtinib has demonstrated significant activity in intracranial lesions, which is a notable advantage. Despite a numerically lower overall response rate compared to a key competitor, zidesamtinib’s trial included patients with more extensive prior treatments, showcasing its effectiveness even in heavily pre-treated populations. The drug’s tolerability, especially concerning CNS toxicities, further enhances its appeal, potentially making it the first-line standard of care with substantial revenue prospects. The company’s strategic regulatory pathway and the confidence gained from the ROS1 program also contribute to the positive outlook for Nuvalent’s stock.
In another report released today, H.C. Wainwright also maintained a Buy rating on the stock with a $130.00 price target.