Cogent Biosciences, the Healthcare sector company, was revisited by a Wall Street analyst today. Analyst David Lebowitz from Citi maintained a Buy rating on the stock and has a $22.00 price target.
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David Lebowitz’s rating is based on several promising developments surrounding Cogent Biosciences and its lead product, bezuclastinib. The recent positive results from the SUMMIT trial in non-advanced systemic mastocytosis have significantly boosted investor confidence, as the data suggests bezuclastinib could outperform existing treatments like Ayvakit. This optimism is further supported by the manageable safety profile of the drug and the anticipation of upcoming data releases that could strengthen its market position.
Moreover, the potential of bezuclastinib extends beyond non-advanced systemic mastocytosis, with expectations for its efficacy in advanced systemic mastocytosis and gastrointestinal stromal tumors. These future readouts from the APEX and PEAK trials are expected to drive further growth, particularly given the unmet medical needs in these areas. Additionally, the valuation gap between Cogent and competitors like Blueprint Medicines, which was acquired by Sanofi, highlights the potential undervaluation of Cogent’s market position. These factors collectively underpin Lebowitz’s Buy rating, with an expected share price return of over 80%.
In another report released on July 14, Leerink Partners also maintained a Buy rating on the stock with a $18.00 price target.