Nuvalent (NUVL – Research Report), the Healthcare sector company, was revisited by a Wall Street analyst today. Analyst Charles Zhu from LifeSci Capital maintained a Buy rating on the stock and has a $110.00 price target.
Charles Zhu has given his Buy rating due to a combination of factors that highlight the potential of Nuvalent’s drug, zidesaminib, in the treatment of ROS1-positive non-small cell lung cancer (NSCLC). The promising results from the Phase 1 trial, which showed a high overall response rate and a clean safety profile, set a strong foundation for the upcoming Phase 2 data expected in the first half of 2025.
Zhu also notes that the management’s strategic approach, including the potential to present additional data on TKI-naive patients and a clear regulatory path, strengthens the company’s position. Despite the competitive landscape with other ROS1 inhibitors, zidesaminib’s favorable safety profile and the company’s robust enrollment in studies like ARROS-1 suggest a significant commercial opportunity. The stable sales of crizotinib in the US further imply a substantial market potential for zidesaminib, supporting Zhu’s optimistic outlook on the stock.