Terns Pharmaceuticals (TERN) has received a new Buy rating, initiated by Truist Financial analyst, Srikripa Devarakonda.
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Srikripa Devarakonda’s rating is based on several compelling factors that suggest a promising future for Terns Pharmaceuticals. The company’s lead asset, TERN-701, is positioned as a potentially best-in-class treatment for chronic myeloid leukemia (CML), a rare blood cancer. Despite the availability of generic treatments, there remains a significant unmet need due to safety and resistance issues, which TERN-701 aims to address with its enhanced potency and favorable safety profile.
Additionally, Terns Pharmaceuticals is strategically focusing on oncology, which is expected to enhance its market position. The company’s second asset, an oral GLP-1 agonist, has shown promising early-stage data and could become a safe oral option for obesity, further supported by potential partnerships. The valuation of Terns Pharmaceuticals, with a price target of $20 per share, reflects the potential peak market opportunities and the favorable risk/reward profile of its pipeline, despite the inherent risks associated with clinical-stage biotech companies.
In another report released on October 8, Citizens JMP also reiterated a Buy rating on the stock with a $20.00 price target.
Based on the recent corporate insider activity of 14 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 TERN in relation to earlier this year.