Guggenheim raises Cogent stock price target to $20 on GIST opportunity

Published 25/08/2025, 13:08
Guggenheim raises Cogent stock price target to $20 on GIST opportunity

Investing.com - Guggenheim raised its price target on Cogent (NASDAQ:COGT) to $20.00 from $17.00 on Monday, while maintaining a Buy rating on the stock. The company’s shares, currently trading at $12.12, have shown remarkable momentum with a 73.39% gain over the past six months. According to InvestingPro data, the stock is trading near its 52-week high of $12.97.

The price target increase follows Cogent’s recent announcement of positive topline data from the Phase 3 SUMMIT study of its KIT inhibitor bezuclastinib in non-advanced systemic mastocytosis. The company expects to announce top-line results from two additional registration studies—"APEX" in advanced systemic mastocytosis and "PEAK" in gastrointestinal stromal tumor (GIST)—in the second half of 2025. InvestingPro analysis shows the company maintains strong financial flexibility with a healthy current ratio of 4.19 and more cash than debt on its balance sheet.

Guggenheim’s analysis focuses on the PEAK study, which evaluates bezuclastinib in combination with Sutent (sunitinib) versus Sutent alone in second-line GIST patients following treatment with imatinib. The firm believes the combination therapy is well-positioned to potentially exceed the benchmark for success of approximately 11.5 months median progression-free survival with manageable tolerability.

The research firm estimates bezuclastinib has potential to address a collective $3 billion-plus U.S. total addressable market across all three indications, with the opportunity to capture the majority of the more than $1 billion U.S. market in second-line GIST treatment, where the standard of care has remained unchanged for nearly two decades.

Guggenheim sees an asymmetric risk/reward profile heading into the data readout, with potential for a 70% stock gain or 25% decline, and estimates the GIST opportunity currently accounts for approximately $2-$3 per share in Cogent’s valuation.

In other recent news, Cogent Biosciences has made headlines with several significant developments. The company announced positive top-line results from its SUMMIT trial of bezuclastinib in non-advanced systemic mastocytosis, achieving statistical significance across all primary and key secondary endpoints. This news led to a series of analyst upgrades, with Citi raising its price target to $22, Jefferies increasing it to $28, and Leerink Partners setting a new target at $18, all while maintaining favorable ratings. In addition to these developments, Cogent Biosciences plans to raise $150 million through a public offering of common stock, with an option for underwriters to purchase an additional $22.5 million of shares. The trial results and subsequent analyst upgrades reflect the potential of bezuclastinib, as noted by these investment firms. The company’s stock experienced a notable surge following the trial results, highlighting investor interest. These recent events are pivotal for Cogent Biosciences as they continue to advance their clinical programs.

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