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On Monday, H.C. Wainwright analysts reiterated their Buy rating for Day One Biopharmaceuticals (NASDAQ: DAWN) stock, maintaining a price target of $36.00, representing significant upside from the current price of $6.38. According to InvestingPro data, analyst targets range from $20 to $36, with a strong consensus Buy recommendation. The analysts expressed optimism about the company’s outlook as Ojemda (tovorafenib) begins its initial commercial sales phase following FDA approval for treating BRAF-altered relapsed/refractory pediatric low-grade glioma (pLGG).
The analysts highlighted a favorable risk/reward scenario, with a 2025 revenue projection of $161 million. This estimate is based on anticipated increased real-world adoption, longer treatment durations, and a larger-than-expected addressable market of 2,000 to 3,000 relapsed/refractory pLGG patients in the U.S. alone. InvestingPro data reveals the company maintains impressive gross profit margins of 95% and a strong balance sheet with minimal debt, supporting its growth trajectory. The stock’s negative beta of -1.24 indicates it often moves counter to market trends, potentially offering portfolio diversification benefits.
The report noted that the current model does not account for potential gains from front-line use, pending results from the FIREFLY-2 study, which could significantly boost long-term growth. Key assumptions in the model include extended treatment durations without cumulative toxicity, a manageable side effect profile suitable for outpatient care, and increasing long-term viability in both relapsed/refractory and potential future first-line settings.
Enrollment in the FIREFLY-2 study is progressing, and payer coverage has already been established, according to the analysts. They view Day One Biopharmaceuticals as a compelling opportunity with significant potential for growth.
In other recent news, Day One Biopharmaceuticals reported its first-quarter 2025 earnings, with an earnings per share (EPS) of -0.35, surpassing the forecasted -0.42. However, the company faced a revenue shortfall, posting $30.76 million against a forecast of $31.34 million. Despite the revenue miss, the company demonstrated resilience with an 11% quarter-over-quarter revenue growth, driven by its flagship product, Ogemda. Day One Biopharmaceuticals continues to focus on expanding its market share in the pediatric low-grade glioma space. Analyst firm TD Cowen maintained a Buy rating on Day One Biopharmaceuticals with a price target of $34.00, highlighting optimism for the company’s strategic focus and growth potential. The firm anticipates significant growth driven by increased prescribing and adoption of treatments in earlier therapy lines. Day One’s management expressed confidence in ongoing growth and emphasized the importance of expanding Ogemda into first-line treatments. The company remains financially stable with a strong cash position and no debt, which supports its strategic growth initiatives.
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