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Investing.com - Lake Street Capital Markets initiated coverage on Coya Therapeutics (NASDAQ:COYA) with a Buy rating and a price target of $16.00 on Wednesday. The stock, currently trading at $6.14, has seen analyst targets ranging from $14 to $20, according to InvestingPro data.
The research firm’s price target represents significant upside potential from the biotech company’s current trading levels, based on Lake Street’s valuation of Coya’s COYA-302 treatment for ALS. With a market capitalization of just over $100 million, COYA maintains strong liquidity with a current ratio of 8.84 and holds more cash than debt on its balance sheet, though InvestingPro analysis indicates the company is currently overvalued relative to its Fair Value.
Lake Street values COYA-302 at $1.9 billion, applying a 5x multiple to estimated 2030 sales of $2.0 billion, discounted back to year-end 2025 at 40% annually. The firm cites the early-stage nature of the program as justification for the high discount rate.
The valuation assigns $280 million, or 15% of COYA-302’s value, to Coya’s enterprise value based on the company’s economics, which include low- to mid-teens royalty plus milestones.
Lake Street adds $22 million in projected year-end 2025 cash to arrive at a projected market capitalization of $302 million, or $16 per share, assuming 16.8 million shares outstanding plus the exercise of in-the-money options and warrants.
In other recent news, Coya Therapeutics has resubmitted its Investigational New Drug (IND) application to the U.S. Food and Drug Administration for a Phase 2 clinical trial focused on treating amyotrophic lateral sclerosis (ALS) with COYA 302. This follows the company’s inclusion of additional non-clinical data as requested by the FDA. In a significant development, Coya Therapeutics has also secured a U.S. patent for its liquid formulation of interleukin-2 (IL-2), which is a part of the company’s strategy to strengthen its intellectual property portfolio. The patent supports Coya’s efforts to advance its therapies, including COYA 301 and COYA 302, which target inflammation-related conditions.
Analyst firms have shown confidence in Coya Therapeutics, with H.C. Wainwright maintaining a Buy rating and a price target of $18.00, citing the importance of the new patent. Similarly, BTIG reiterated its Buy rating with a $15.00 price target, highlighting the upcoming FDA submission for the Phase 2/3 ALS trial as a critical step. The analyst at BTIG noted the positive data from a Phase 1b ALS study, where COYA-302 showed stability in patients and increased T regulatory cell activity. Furthermore, the potential impact of COYA-303, which combines low dose IL2 with a GLP-1 receptor agonist for Alzheimer’s disease, was also noted. These developments suggest that Coya Therapeutics is making significant strides in its clinical programs and patent portfolio.
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