Barclays initiates Terns Pharmaceuticals stock with Overweight rating

Published 17/09/2025, 10:28
Barclays initiates Terns Pharmaceuticals stock with Overweight rating

Investing.com - Barclays initiated coverage on Terns Pharmaceuticals (NASDAQ:TERN) with an Overweight rating and a $15.00 price target on Wednesday. According to InvestingPro data, the stock has surged 124% over the past six months, with analysts setting targets ranging from $7.44 to $34.

The research firm highlighted TERN-701, the company’s lead asset, as a third-generation allosteric inhibitor of BCR-ABL being developed for chronic myeloid leukemia (CML). Barclays views this asset as having a differentiated profile from first- and second-generation BCR-ABL inhibitors and the current standard of care.

Terns Pharmaceuticals is also developing TERN-601, an oral GLP-1 agonist for patients with obesity, further diversifying its pipeline of small molecule therapeutics for oncology and metabolic diseases.

Barclays estimates that TERN-701 has potential to generate over $1 billion in revenue, despite the stock currently trading at what the firm considers a sharp discount.

The firm expects upcoming data in the fourth quarter to serve as an important inflection point for the stock. The company’s next earnings report is scheduled for November 18, 2025.

In other recent news, Terns Pharmaceuticals has completed enrollment in its Phase 2 FALCON clinical trial for TERN-601, an oral GLP-1 receptor agonist aimed at treating obesity. The company anticipates releasing topline data from this trial in the fourth quarter of 2025. Additionally, Terns Pharmaceuticals plans to present further findings from a completed Phase 1 study of TERN-601, which initially showed significant weight loss results, at an upcoming scientific conference. Meanwhile, Terns is also preparing for an investor webinar to discuss TERN-701, its investigational treatment for chronic myeloid leukemia (CML), ahead of expected data later in the year. In the realm of analyst evaluations, Citizens JMP has reiterated a Market Outperform rating for Terns Pharmaceuticals, citing positive efficacy data for TERN-701. The analyst, Silvan Tuerkcan, highlighted the drug’s promising results in refractory patients and those not tolerating their current treatment. These developments underscore Terns Pharmaceuticals’ ongoing progress in its clinical trials and analyst confidence in its pipeline.

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

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