Terns Pharmaceuticals (TERN)
NASDAQ:TERN
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Terns Pharmaceuticals
(NASDAQ:TERN)
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Rating:63Neutral
Price Target:
$56.00
▲(6.36% Upside)
Action:ReiteratedDate:04/27/26
The score is driven primarily by mixed fundamentals—very strong capitalization and minimal debt but continued large losses and cash burn. Technicals are constructive but overbought, while valuation remains constrained by negative earnings and no dividend. Corporate events are a significant positive, led by the announced Merck acquisition and FDA Breakthrough designation.
Positive Factors
Balance sheet strength
Minimal debt and a large equity base give the company durable financial flexibility to fund clinical programs or withstand delays without immediate refinancing. This reduces bankruptcy and refinancing risks over the next several months and supports sustained R&D investment through near-term milestones.
Negative Factors
No recurring revenue and widening losses
As a pre-revenue biotech, the company lacks internal product cashflows to offset spending; widening net losses mean no earnings cushion. Over months this elevates dependence on external capital or transactions to sustain programs and increases dilution or cutback risk absent deal closure.
Read all positive and negative factors
Positive Factors
Negative Factors
Balance sheet strength
Minimal debt and a large equity base give the company durable financial flexibility to fund clinical programs or withstand delays without immediate refinancing. This reduces bankruptcy and refinancing risks over the next several months and supports sustained R&D investment through near-term milestones.
Read all positive factors
Terns Pharmaceuticals (TERN) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$6.10B
Dividend YieldN/A
Average Volume (3M)9.18M
Price to Earnings (P/E)―
Beta (1Y)1.02
Revenue GrowthN/A
EPS Growth8.38%
CountryUS
Employees59
SectorHealthcare
Sector Strength45
IndustryBiotechnology
Share Statistics
EPS (TTM)-0.25
Shares Outstanding115,413,390
10 Day Avg. Volume9,228,312
30 Day Avg. Volume9,177,298
Financial Highlights & Ratios
PEG Ratio4.87
Price to Book (P/B)3.74
Price to Sales (P/S)0.00
P/FCF Ratio-45.80
Enterprise Value/Market Cap0.70
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/Ebitda-38.55
Forecast
1Y Price Target
$52.98Price Target Upside0.63% Upside
Rating ConsensusHold
Number of Analyst Covering10
EPS Forecast (FY)-1.13
Revenue Forecast (FY)N/A
Terns Pharmaceuticals Business Overview & Revenue Model
Company Description
Terns Pharmaceuticals, Inc., a clinical-stage biopharmaceutical company, develops small-molecule single-agent and combination therapy candidates for the treatment of non-alcoholic steatohepatitis (NASH) and obesity. The company develops TERN-101, ...
How the Company Makes Money
Terns Pharmaceuticals is a clinical-stage company and, as such, it does not have a recurring product-revenue business model from selling approved medicines. Its funding and any revenue typically come from: (1) Collaboration and licensing arrangeme...
Terns Pharmaceuticals Financial Statement Overview
Summary
Income Statement
18
Very Negative
Balance Sheet
74
Positive
Cash Flow
34
Negative
| Breakdown | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 0.00 | 0.00 | 0.00 | 0.00 | 1.00M |
| Gross Profit | 0.00 | 0.00 | 0.00 | 0.00 | 1.00M |
| EBITDA | -110.12M | -100.97M | -101.68M | -61.00M | -49.35M |
| Net Income | -96.21M | -88.85M | -90.21M | -60.34M | -50.16M |
Balance Sheet | |||||
| Total Assets | 1.03B | 363.93M | 268.52M | 287.03M | 168.07M |
| Cash, Cash Equivalents and Short-Term Investments | 1.02B | 358.16M | 263.44M | 283.11M | 165.98M |
| Total Debt | 919.00K | 1.35M | 603.00K | 1.21M | 0.00 |
| Total Liabilities | 18.55M | 18.06M | 13.15M | 10.08M | 7.77M |
| Stockholders Equity | 1.01B | 345.87M | 255.37M | 276.94M | 160.30M |
Cash Flow | |||||
| Free Cash Flow | -82.18M | -70.06M | -67.44M | -49.38M | -42.17M |
| Operating Cash Flow | -82.18M | -70.02M | -67.39M | -49.11M | -41.83M |
| Investing Cash Flow | -298.04M | -12.41M | -37.99M | -22.27M | -119.70M |
| Financing Cash Flow | 743.51M | 164.00M | 41.95M | 167.09M | 134.39M |
Terns Pharmaceuticals Technical Analysis
Positive
52.65
Price Trends
46.00
Positive
41.32
Positive
25.11
Positive
Market Momentum
1.88
Positive
72.87
Negative
69.22
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TERN, the sentiment is Positive. The current price of 52.65 is above the 20-day moving average (MA) of 52.24, above the 50-day MA of 46.00, and above the 200-day MA of 25.11, indicating a bullish trend. The MACD of 1.88 indicates Positive momentum. The RSI at 72.87 is Negative, neither overbought nor oversold. The STOCH value of 69.22 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for TERN.
Terns Pharmaceuticals Risk Analysis
Terns Pharmaceuticals disclosed 80 risk factors in its most recent earnings report. Terns Pharmaceuticals reported the most risks in the "Tech & Innovation" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Terns Pharmaceuticals Peers Comparison
UnderperformOutperform
Sector (51)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
63 Neutral | $6.10B | -39.12 | -20.02% | ― | ― | 8.38% | |
58 Neutral | $1.69B | -67.88 | 1813.84% | ― | 157.01% | 94.31% | |
57 Neutral | $226.95M | 8.71 | 14.25% | ― | 6774.96% | ― | |
53 Neutral | $1.72B | -5.04 | -64.21% | ― | 27.23% | -12.53% | |
52 Neutral | $2.02B | -13.06 | -41.17% | ― | ― | -33.44% | |
51 Neutral | $7.86B | -0.30 | -43.30% | 2.27% | 22.53% | -2.21% | |
47 Neutral | $1.35B | -13.39 | -42.90% | ― | ― | 13.36% |
* Healthcare Sector Average
TERN
Terns Pharmaceuticals
52.95
50.01
1701.02%
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Terns Pharmaceuticals Corporate Events
Business Operations and StrategyM&A TransactionsProduct-Related AnnouncementsRegulatory Filings and Compliance
Terns Pharmaceuticals Gains FDA Breakthrough Status for TERN-701
Positive
Apr 27, 2026
On April 27, 2026, Terns Pharmaceuticals announced that the U.S. Food and Drug Administration granted Breakthrough Therapy Designation to its investigational drug TERN-701 for adults with Philadelphia chromosome-positive chronic myeloid leukemia i...
Business Operations and StrategyM&A Transactions
Terns Pharmaceuticals to Be Acquired by Merck
Positive
Mar 25, 2026
On March 24, 2026, Terns Pharmaceuticals agreed to be acquired by Merck in an all-cash deal under which a Merck subsidiary will launch a tender offer to buy all outstanding Terns shares for $53 per share, valuing the equity at about $6.7 billion, ...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.