In a report released today, Robert Burns from H.C. Wainwright reiterated a Buy rating on Springworks Therapeutics (SWTX – Research Report), with a price target of $74.00.
Robert Burns has given his Buy rating due to a combination of factors that highlight the potential growth and strategic positioning of Springworks Therapeutics. One of the primary reasons is the anticipated positive opinion from the European Medicines Agency’s Committee for Medicinal Products for Human Use regarding the Marketing Authorization Application for nirogacestat in treating desmoid tumors. This expectation is based on favorable Phase 3 trial results, which demonstrated significant improvements in progression-free survival and overall response rates compared to placebo.
Additionally, the potential acquisition of Springworks by Merck KGaA at a substantial valuation underscores the company’s attractiveness in the oncology sector. The recent FDA approvals of both OGSIVEO and GOMEKLI further strengthen Springworks’ market position, making it a compelling target for mergers and acquisitions. Burns also employs a discounted cash flow approach to valuation, considering the probabilities of product launches and assigning a 12-month price target of $74, while acknowledging risks such as commercialization challenges and clinical setbacks.
According to TipRanks, Burns is an analyst with an average return of -23.9% and a 23.80% success rate. Burns covers the Healthcare sector, focusing on stocks such as Perspective Therapeutics, Springworks Therapeutics, and Exelixis.
In another report released on April 22, Evercore ISI also maintained a Buy rating on the stock with a $65.00 price target.