Wedbush analyst Yun Zhong maintained a Buy rating on Sagimet Biosciences, Inc. Class A today and set a price target of $28.00.
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Yun Zhong has given his Buy rating due to a combination of factors tied to Sagimet’s advancing clinical programs and recently de-risked safety profile. He views the year-long acne data from Ascletis’ denifanstat trial as a strong external validation of Sagimet’s FASN-inhibition strategy, since TVB-3567 shares the same mechanism and is aimed at the same indication. The low incidence and reversibility of hair thinning in that study further support the tolerability of denifanstat, which, in his view, strengthens confidence in both the standalone acne program and the denifanstat/resmetirom combination being developed for advanced MASH (F4). Management’s confirmation that both programs remain on schedule to start Phase 2 in the second half of 2026, along with upcoming data presentations, underpins his constructive outlook on the company’s clinical momentum.
At the same time, Zhong highlights that the long-term acne safety results help address historical concerns around dermatologic side effects seen at higher doses in oncology settings, reinforcing the overall risk-benefit profile of the drug. He also notes that Sagimet aims to reproduce denifanstat’s efficacy and safety with TVB-3567, where ongoing dose escalation may allow efficacy at lower doses and potentially an even cleaner safety profile. The completed Phase 1 work in MASH and planned FDA interactions to design a Phase 2 study using non-invasive endpoints add further clarity to the development path. Taken together, these safety validations, program timelines, and a defined regulatory strategy support his view that the probability of clinical success is improving and justify maintaining a Buy rating on Sagimet shares.
In another report released yesterday, JonesTrading also maintained a Buy rating on the stock with a $26.00 price target.