Analyst Yun Zhong of Wedbush reiterated a Buy rating on Sagimet Biosciences, Inc. Class A, retaining the price target of $28.00.
Elevate Your Investing Strategy:
- Take advantage of TipRanks Premium at 50% off! Unlock powerful investing tools, advanced data, and expert analyst insights to help you invest with confidence.
Yun Zhong has given his Buy rating due to a combination of factors that highlight the promising potential of Sagimet Biosciences, Inc.’s FASN inhibitors. The company’s lead products, danifanstat in combination with resmetirom for MASH patients with stage 4 fibrosis, and TVB-3567 for moderate to severe acne, have shown positive results in late-stage studies, reducing the risk associated with their development. The initiation of a Phase 1 pharmacokinetic study for the danifanstat/resmetirom combination is expected to begin in the second half of 2025, with data anticipated in the first half of 2026, supporting the company’s timeline for further development.
Additionally, Sagimet’s strong cash position, with $135.5 million at the end of the second quarter of 2025, is expected to provide financial support into the second half of 2027, allowing the company to reach proof-of-concept data for both programs. The use of advanced digital pathology techniques in previous studies has improved the detection of fibrosis improvement, enhancing the evaluation of treatment effects. Furthermore, the safety profile of denifanstat, demonstrated in a Phase 3 acne study, adds confidence to the ongoing development of both FASN inhibitors. These factors collectively underpin Yun Zhong’s positive outlook and Buy rating for SGMT stock.
Zhong covers the Healthcare sector, focusing on stocks such as MannKind, Ascendis Pharma, and Rocket Pharmaceuticals. According to TipRanks, Zhong has an average return of -14.2% and a 40.72% success rate on recommended stocks.
In another report released today, H.C. Wainwright also reiterated a Buy rating on the stock with a $29.00 price target.