Terns Pharmaceuticals (TERN) has received a new Buy rating, initiated by TD Cowen analyst, Ritu Baral.
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Ritu Baral has given her Buy rating due to a combination of factors that highlight the promising potential of Terns Pharmaceuticals. One of the key reasons is the positive interim data from the Phase 1/2 CARDINAL trial for ‘701, an allosteric BCR-ABL/STAMP inhibitor for chronic myeloid leukemia (CML). The trial showed that low doses of ‘701 led to significant molecular and hematologic responses in patients, with a cumulative molecular response rate of 50% in patients without the T315I mutation. The safety profile was also encouraging, with ongoing evaluations for higher doses.
Another factor influencing the Buy rating is the financial stability of Terns Pharmaceuticals, which reported a cash position of $334.5 million at the end of the first quarter of 2025. This financial runway is expected to support operations into 2028, providing a solid foundation for continued research and development. Additionally, the ongoing Phase 2 FALCON trial for obesity and the positive drug-drug interaction data further support the potential for future growth and success in their pipeline.
In another report released on April 29, Mizuho Securities also reiterated a Buy rating on the stock with a $14.00 price target.