Nuvalent initiated with a Buy at Guggenheim

Guggenheim analyst Charles Zhu initiated coverage of Nuvalent with a Buy rating and $56 price target. The clinical-stage precision oncology biotech is leveraging its structure-based drug design platform to generate potent and selective inhibitors against validated targets, the analyst tells investors. The firm believes that Nuvalent’s “early but compelling” and best-in-class ROS1 data for NVL-520 validates their platform and reads through positively to the company’s ability to differentiate in the larger market, the analyst added.