Terns Pharmaceuticals initiated with an Outperform at Oppenheimer

Oppenheimer initiated coverage of Terns Pharmaceuticals (TERN) with an Outperform rating and $17 price target representing 150% potential upside. The firm is optimistic about the company’s clinical pipeline with lead assets TERN-701 for chronic myeloid leukemia and TERN-601 for obesity. TERN-701 is a tyrosine kinase inhibitor that builds on the proven success of Novartis’ asciminib with potential differentiation in dosing and tolerability, the analyst tells investors in a research note. Oppenheimer believes consensus estimates currently undervalue Terns’ potential to capture chronic myeloid leukemia market share.