Truist Securities initiates coverage on Ideaya Biosciences stock with Buy rating

Investing.com - Truist Securities initiated coverage on Ideaya Biosciences (NASDAQ:IDYA) with a Buy rating and a price target of $59.00 on Monday, representing a 74% upside from the current price of $33.99. The stock has shown strong momentum, trading near its 52-week high of $34.66 and delivering an impressive 80.6% return over the past six months.

The research firm cited the company’s diverse precision oncology pipeline as the foundation for its positive outlook, with the darovasertib (daro) development program in uveal melanoma serving as the primary value driver. InvestingPro data shows Ideaya maintains a strong financial position with more cash than debt on its balance sheet and a current ratio of 12.44, providing runway for its development programs.

Truist Securities identified the upcoming Phase II/III progression-free survival (PFS) readout for daro in first-line metastatic uveal melanoma, expected between year-end 2025 and first quarter 2026, as a potential pivotal inflection point for the company.

The firm noted that positive results from this trial could support accelerated approval and drive a commercial transformation for Ideaya by 2026.

Beyond the lead program, Truist Securities highlighted IDE397 in MTAP-tumors and IDE849 in small cell lung cancer as additional assets with early validation, along with earlier-stage synthetic lethality and antibody-drug conjugate programs that provide "meaningful optionality for potential upside."

In other recent news, IDEAYA Biosciences Inc reported a notable profit in the third quarter, primarily due to revenue from its exclusive licensing agreement with Servier. This agreement involves IDEAYA’s lead drug candidate, darovasertib, for markets outside the United States. The financial results highlight the impact of strategic partnerships on the company’s revenue stream. These developments are part of IDEAYA’s ongoing efforts to expand its global reach and capitalize on its drug portfolio. The company’s performance in this quarter underscores the importance of its collaborations in driving profitability. This recent announcement provides investors with insight into IDEAYA’s financial health and strategic direction.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.