Gossamer Bio stock rating upgraded by UBS on PAH trial optimism

Published 10/09/2025, 10:06
Gossamer Bio stock rating upgraded by UBS on PAH trial optimism

Investing.com - Gossamer Bio Inc. (NASDAQ:GOSS), which has surged over 140% in the past six months according to InvestingPro data, received a significant upgrade from UBS on Wednesday, with analyst Eliana Merle raising the stock rating from Neutral to Buy and increasing the price target to $9.00 from $1.25.

The upgrade comes ahead of Gossamer’s Phase 3 pulmonary arterial hypertension (PAH) trial data expected in February, with UBS citing "underappreciated probability of success" for the company’s seralutinib treatment. InvestingPro analysis shows the company maintains a healthy current ratio of 4.4, though it faces challenges with cash burn.

UBS highlighted several factors supporting potential trial success, including Phase 2 data showing seralutinib’s activity in PAH, a strong mechanistic rationale based on Gleevec data, and improved safety from inhaled delivery compared to systemic administration.

The research firm noted trial design advantages, including enrichment for sicker patient populations that showed greater benefit in Phase 2 (approximately 37m benefit versus 7m overall), conservative statistical powering, and inclusion of more ex-US patients.

UBS sees favorable risk-reward potential, with possible upside of 100-200% on success versus approximately 90% downside on failure, noting Gossamer’s $630 million market cap compared to the current PAH market size of approximately $7-8 billion. For deeper insights into GOSS’s valuation and growth potential, access the comprehensive Pro Research Report available on InvestingPro.

In other recent news, H.C. Wainwright has reiterated its Buy rating on Gossamer Bio, maintaining a price target of $10. This decision comes as the firm anticipates key clinical data for seralutinib, Gossamer Bio’s investigational treatment for pulmonary arterial hypertension, expected in early 2026. The analysis by H.C. Wainwright follows a literature review that reinforced a positive outlook on the potential of seralutinib. These developments highlight ongoing interest and confidence in Gossamer Bio’s research and development efforts. The reiterated Buy rating suggests that H.C. Wainwright sees promising prospects for the company’s drug pipeline. Investors may find this information relevant as they consider the company’s future potential.

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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