Cogent stock rating reiterated by Stifel at Hold with $16 price target

Investing.com - Stifel has reiterated its Hold rating on Cogent (NASDAQ:COGT) with a price target of $16.00, according to a note from analyst Laura Prendergast. This target sits significantly below Cogent’s current trading price of $33.13, despite the stock’s impressive 208% gain over the past six months. InvestingPro data shows the stock is currently trading near its 52-week high.

The firm’s analysis follows IDRX/GSK’s upcoming poster presentation featuring updated safety and efficacy data for IDRX-42 at the recommended Phase 1b dose in gastrointestinal stromal tumor (GIST), which has been posted on the CTOS virtual platform.

Stifel views the IDRX-42 progression-free survival (PFS) of 15 months in second-line GIST at the recommended Phase 1b dose (n=45) as de-risking for PEAK probability of success, noting that both IDRX-42 and Cogent’s bezuclastinib plus sunitinib take pan-KIT resistance mutation inhibition approaches to improve outcomes for patients progressing after imatinib treatment.

The research indicates IDRX-42 shows limited efficacy in third-line treatment post-bezuclastinib, with 0% objective response rate and 50% disease control rate in a small sample (n=4).

Stifel cautions that single-arm PFS data requires careful interpretation, noting limitations including the absence of baseline circulating tumor DNA and mutational status breakdowns, while questioning how IDRX-42 activity compares to sunitinib specifically in KIT exon13/14 mutation patients. While Cogent maintains a strong liquidity position with a current ratio of 6.38, InvestingPro analysis indicates the company is not yet profitable, with analysts not expecting profitability this year. Discover more financial insights and 8 additional ProTips for Cogent on InvestingPro.

In other recent news, Cogent Biosciences has reported significant developments. The company announced positive results from its Phase 3 PEAK trial, where the combination of bezuclastinib and sunitinib demonstrated a median progression-free survival of 16.5 months in gastrointestinal stromal tumors, significantly outperforming sunitinib monotherapy. The U.S. Food and Drug Administration has granted Breakthrough Therapy Designation for bezuclastinib, targeting specific systemic mastocytosis patients with no approved standard of care. Analyst firm Raymond James has reiterated a Strong Buy rating for Cogent Biosciences, emphasizing the potential of upcoming pivotal data from trials and a planned New Drug Application filing. Meanwhile, Stifel has initiated coverage on the company with a Hold rating and a $16 price target, noting potential upside but considering current share prices reflective of expected success. Raymond James has also added Cogent Biosciences to its Analyst Current Favorites list, citing the strong growth potential of its bezuclastinib drug in the systemic mastocytosis market. These developments indicate a significant period of activity and potential growth for Cogent Biosciences in the pharmaceutical sector.

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