Optimistic Buy Rating for IDEAYA Biosciences: Expanding Market Potential and Promising Clinical Data

Charles Zhu, an analyst from LifeSci Capital, maintained the Buy rating on IDEAYA Biosciences (IDYA – Research Report). The associated price target remains the same with $58.00.

Charles Zhu has given his Buy rating due to a combination of factors that highlight the potential of IDEAYA Biosciences. The company has presented compelling registry data indicating that the frequency of HLA*A2:01-negativity is higher than previously thought, which could significantly expand the commercial opportunity for their treatments. This data suggests that the market for HLA-negative patients could be three to four times larger than that for HLA-positive patients, enhancing the potential market size.
Furthermore, Zhu notes that the upcoming Phase 2/3 data could reveal a more favorable progression-free survival (PFS) outcome than investors currently anticipate. This, coupled with the possibility of a meaningful improvement in median overall survival (mOS) based on previous single-agent data, strengthens the investment case. The firm’s valuation model, projecting a price target of $58 per share, reflects these optimistic prospects and assumes a weighted average cost of capital (WACC) of 12% with 89.4 million diluted shares by 2043.

In another report released on May 22, J.P. Morgan also maintained a Buy rating on the stock with a $66.00 price target.