Coya Therapeutics, Inc., the Healthcare sector company, was revisited by a Wall Street analyst today. Analyst Ram Selvaraju from H.C. Wainwright reiterated a Buy rating on the stock and has a $18.00 price target.
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Ram Selvaraju has given his Buy rating due to a combination of factors including the initiation of the Phase 2 ALSTARS trial for COYA 302, which is aimed at evaluating its efficacy and safety in treating amyotrophic lateral sclerosis (ALS). The trial’s design, involving 120 patients across multiple sites, and the potential for long-term safety and efficacy data, underscores the promising outlook for COYA 302. Additionally, the upcoming near-term catalysts, such as milestone payments, biomarker data publications, and new clinical data releases, further enhance the stock’s value inflection potential.
Selvaraju’s valuation approach employs a discounted cash flow methodology, incorporating a 12% discount rate and a 2% terminal growth rate, with probabilities of approval for COYA 302 factored in for both ALS and Alzheimer’s disease. This results in a valuation of $450 million, translating to a price target of $18 per share. However, potential risks such as clinical setbacks, regulatory challenges, and partnership issues are also acknowledged, but the overall outlook remains positive, justifying the Buy rating.
In another report released yesterday, Lake Street also initiated coverage with a Buy rating on the stock with a $16.00 price target.