Sagimet Biosciences, Inc. Class A, the Healthcare sector company, was revisited by a Wall Street analyst today. Analyst Brandon Folkes from H.C. Wainwright reiterated a Buy rating on the stock and has a $29.00 price target.
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Brandon Folkes has given his Buy rating due to a combination of factors, primarily focusing on the advancements in Sagimet Biosciences’ fatty acid synthase (FASN) inhibitor platform. The company’s lead program, denifanstat, has shown promising results in treating metabolic dysfunction-associated steatohepatitis (MASH) and acne, with significant improvements in clinical trials. The recent success in a Phase 3 trial for acne in China, conducted by license partner Ascletis, further validates the potential of denifanstat, achieving all primary and secondary endpoints.
Additionally, Sagimet’s strategic initiatives, including the initiation of a first-in-human Phase 1 trial of TVB-3567 for acne in the U.S., indicate a robust pipeline with potential near-term catalysts. The company’s strong cash position of $135.5 million supports its ongoing research and development efforts. These factors, combined with the potential for synergy with other therapeutic agents, underpin Folkes’s confidence in the company’s growth prospects and justify the Buy rating.
In another report released yesterday, Canaccord Genuity also maintained a Buy rating on the stock with a $28.00 price target.
Based on the recent corporate insider activity of 7 insiders, corporate insider sentiment is negative on the stock. This means that over the past quarter there has been an increase of insiders selling their shares of SGMT in relation to earlier this year.