Piper Sandler has reaffirmed its Overweight rating on shares of Cogent Biosciences (NASDAQ: COGT) with a $22.00 price target as the firm's stance remains positive following the latest updates on Cogent's clinical studies, including the Phase 3 PEAK and Phase 2 SUMMIT trials.
Cogent announced the completion of enrollment for its Phase 3 PEAK study, which is evaluating the efficacy of bezu in treating second-line Gastrointestinal Stromal Tumors (GIST). The study has successfully passed a pre-planned interim futility analysis. Top-line data from the study is expected by the end of 2025.
Despite the general market focus on the potential of bezu in various indications, Piper Sandler has conservatively estimated the contribution of bezu in the GIST setting at approximately $4 per share in its Sum of the Parts (SoP) valuation.
The firm suggests that if the results surpass expectations, there could be an increase in their valuation estimates.
Furthermore, Cogent has updated the timeline for its Phase 2 SUMMIT trial, which is investigating bezu in Non-Advanced Systemic Mastocytosis.
Enrollment for this trial is now anticipated to be completed in the first quarter of 2025, earlier than the previously expected second quarter. The expected timeline for top-line results has also been moved forward to the second half of 2025, instead of by the end of that year.
Piper Sandler's report highlights the positive outcomes from the first part of both the PEAK and SUMMIT studies.
In other recent news, Cogent Biosciences has made progress in its SUMMIT trial for bezuclastinib, a mastocytosis drug. The trial data revealed a considerable reduction in symptoms for patients with nonadvanced systemic mastocytosis. Concurrently, the company is making strides with the PEAK study for Gastrointestinal Stromal Tumors, with enrollment expected to complete by the third quarter of 2024.
Analysts from Piper Sandler and Jefferies have maintained a positive outlook on Cogent. Piper Sandler reiterated its Overweight rating, highlighting promising data from the PEAK study assessing bezuclastinib's effectiveness. Jefferies also resumed coverage of Cogent, setting a new price target and emphasizing the potential of bezuclastinib in treating systemic mastocytosis.
InvestingPro Insights
As Piper Sandler maintains a positive outlook on Cogent Biosciences, real-time data from InvestingPro provides additional context for investors considering the stock. With a market capitalization of $1.2 billion, Cogent holds more cash than debt, indicating a stable financial position that could support its ongoing clinical trials. This aligns with one of the InvestingPro Tips, suggesting that liquid assets exceed short-term obligations, providing the company with a degree of financial flexibility.
However, the company's profitability remains in question as analysts have revised their earnings downwards for the upcoming period, and the company is not expected to be profitable this year. This is reflected in the negative P/E ratios, both standard (-4.43) and adjusted (-5.27 for the last twelve months as of Q2 2024). Despite these challenges, Cogent has experienced significant returns over recent periods, including a 7.83% return over the last week and a 48.55% increase over the last six months, which may capture the interest of growth-oriented investors.
For those seeking a deeper analysis, InvestingPro offers additional InvestingPro Tips for Cogent Biosciences, which can be found at https://www.investing.com/pro/COGT. These tips may provide further insights into the company's stock performance and potential investment opportunities.
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