Piper starts Black Diamond at Overweight on ‘clear opportunity’

Piper Sandler analyst Joseph Catanzaro initiated coverage of Black Diamond Therapeutics with an Overweight rating and $11 price target. The analyst views the company’s lead program BDTX-1535 as a novel precision oncology asset that has now established clinical proof-of-concept. BDTX-1535 has demonstrated clear single-agent activity across a range of clinically relevant EGFR mutations, including multiple secondary acquired resistance mutations to current frontline standard of care osimertinib, the analyst tells investors in a research note. The firm says this represents a “meaningful, and likely growing opportunity” that mirrors the development of earlier generation blockbuster EGFR TKIs. Piper sees “clear opportunity for significant share appreciation” around the potential validation of BDTX-1535’s profile.