Promising Market Position and Investment Opportunity: CG Oncology’s Creto in NMIBC Treatment

Brian Cheng, an analyst from J.P. Morgan, maintained the Buy rating on CG Oncology, Inc. (CGON – Research Report). The associated price target remains the same with $41.00.

Brian Cheng has given his Buy rating due to a combination of factors that highlight CG Oncology, Inc.’s promising position in the market. The company’s product, Creto, is seen as having a potentially superior profile in treating BCG-unresponsive non-muscle invasive bladder cancer (NMIBC), with an impressive balance of efficacy and safety. This is particularly significant given the competitive landscape, where Creto’s approach could offer advantages over existing therapies.
Furthermore, Cheng notes that the current market valuation of CG Oncology does not fully reflect its fundamental strengths, suggesting a disconnect that presents an investment opportunity. He anticipates regulatory approval for Creto’s BLA submission, with additional growth potential driven by upcoming catalysts in 2025 and 2026. The financial projections, including a $41 price target based on discounted cash flow analysis, underscore the expected contributions from Creto across various NMIBC settings, supporting the Buy recommendation.

In another report released on May 19, Morgan Stanley also maintained a Buy rating on the stock with a $52.00 price target.