Biostage stock initiated with Buy rating at TD Cowen on specialty growth

Published 23/06/2025, 11:20
Biostage stock initiated with Buy rating at TD Cowen on specialty growth

Investing.com - TD Cowen initiated coverage on Biostage (OTC:BSTG) with a Buy rating on Monday, setting a price target of $37.00 for the healthcare company.

The research firm cited Biostage’s position as a leading oncology-focused specialty pharmacy and home health provider as a key factor in its positive outlook. TD Cowen believes the company is well-positioned to benefit from continued growth in the specialty pharmaceutical sector.

The firm also highlighted the potential advantage Biostage could gain from an upcoming "patent cliff" in the pharmaceutical industry, which is expected to drive a wave of generic drug introductions. This development could create favorable market conditions for the company’s operations.

TD Cowen’s $37 price target implies the stock would trade at 15 times the firm’s fiscal year 2026 adjusted EBITDA estimate. This valuation metric suggests confidence in Biostage’s medium-term financial performance.

The initiation comes as investors increasingly focus on healthcare companies with specialized services that can navigate the complex pharmaceutical landscape while maintaining growth opportunities in targeted therapeutic areas.

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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