Ideaya should be bought on yesterday’s selloff, says Wells Fargo

Wells Fargo analyst Eva Fortea Verdejo recommends using the selloff yesterday in shares of Ideaya Biosciences (IDYA) as a buying opportunity. The updates at the company’s research and development day were “compelling,” the analyst tells investors in a research note. Wells believes darovasertib’s potential approval in uveal melanoma is “largely de-risked” by the early Phase 2 data. The data is likely too early for darovasertib in the brachy cohort and longer follow-up will be needed, while data for IDE849 and IDE397 look “encouraging,” the firm contends. Wells thinks Ideaya is undervalued and keeps an Overweight rating on the stock with a $44 price target