Goldman Sachs initiates coverage on Nuvalent stock with Buy rating

Published 30/06/2025, 21:56
Goldman Sachs initiates coverage on Nuvalent stock with Buy rating

Investing.com - Goldman Sachs initiated coverage on Nuvalent (NASDAQ:NUVL) with a Buy rating and a price target of $105.00, according to a research note released Monday. The company, currently valued at $5.5 billion, maintains strong financial health with a current ratio of 14.48 and more cash than debt on its balance sheet, according to InvestingPro data.

The investment bank cited zidesamtinib’s (NVL-520) pivotal Phase 2 ARROS-1 topline results in TKI pre-treated ROS1+ NSCLC patients as a key factor in its rating decision, highlighting the drug’s "best-in-class efficacy/safety profile" demonstrated in Phase 1/2 studies. Analyst consensus is strongly bullish, with price targets ranging from $100 to $140, though InvestingPro analysis suggests the stock may be overvalued at current levels.

Goldman Sachs noted the potential for expedited approval for zidesamtinib by separating the development paths for TKI pre-treated and naive patients, as well as the possibility for inclusion in NCCN guidelines as a preferred treatment upon approval.

The firm also pointed to neladalkib’s (NVL-655) ALKOVE-1 Phase 1 results in ALK+ NSCLC and potential upside from NVL-330 in HER2-altered NSCLC as additional factors supporting the Buy rating.

Goldman Sachs increased its peak sales estimates for neladalkib and zidesamtinib to approximately $7 billion worldwide non-risk-adjusted, or about $5 billion risk-adjusted by 2040.

In other recent news, Nuvalent, Inc. has reported pivotal Phase 2 ARROS-1 data for its drug zidesamtinib, which demonstrated superior activity in ROS1-positive non-small cell lung cancer compared to existing treatments. UBS has responded by raising its price target for Nuvalent from $100 to $114, maintaining a Buy rating, and highlighting the drug’s potential for a New Drug Application submission in July 2025. The company also plans to initiate a rolling NDA submission for zidesamtinib, following positive data in previously treated patients, with a target completion in the third quarter of 2025. Additionally, Nuvalent has appointed Christy Oliger, a former Genentech executive, to its Board of Directors, strengthening its leadership team as it moves towards potential commercialization. Meanwhile, board member Emily Conley has announced her resignation, effective at the company’s 2025 annual meeting. Nuvalent has also published preclinical data on zidesamtinib, highlighting its effectiveness against drug-resistant mutations and brain tumors. The company continues to advance its pipeline, including the development of neladalkib, with a Phase 3 trial expected to begin in the second half of 2025.

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