Ideaya Biosciences stock price target lowered to $30 by RBC Capital

Investing.com - RBC Capital lowered its price target on Ideaya Biosciences (NASDAQ:IDYA) to $30.00 from $57.00 on Wednesday, while maintaining an Outperform rating on the biopharmaceutical company. The stock, currently trading at $22.42, has seen a challenging year with a -44.46% return over the past 12 months, according to InvestingPro data.

The firm cited its updated assessment following additional diligence, key opinion leader discussions, and management meetings regarding the company’s clinical pipeline and upcoming catalysts. While the company maintains a strong financial position with a current ratio of 13.92 and minimal debt-to-equity of 0.03, InvestingPro analysis indicates the company is currently trading near its Fair Value.

RBC Capital highlighted a major Phase III readout for Ideaya’s lead drug daro in metastatic uveal melanoma expected toward the end of 2025, assigning a 65% or greater probability of success for this trial.

The investment bank projects potential 40% upside for the stock given the possibility of a rapid commercial launch by 2026, which could unlock what it describes as a "$1B revenue opportunity."

Despite the significant price target reduction, RBC maintained its Outperform rating with a Speculative Risk designation, recommending investors buy the stock ahead of second-half 2025 catalysts and noting pipeline clarity across Ideaya’s ’897 and ’349 programs.

In other recent news, IDEAYA Biosciences has made significant strides in its clinical pipeline. The company announced the progression of its Phase 3 clinical trial for darovasertib as a neoadjuvant therapy for primary uveal melanoma, following a successful FDA Type D meeting. This trial will involve approximately 520 patients and aims to evaluate the drug’s safety and efficacy, focusing on eye preservation and visual acuity maintenance. Additionally, IDEAYA received FDA clearance for a Phase 1 clinical trial of its investigational drug IDE849, targeting several types of solid tumors, including small cell lung cancer and neuroendocrine tumors.

Wells Fargo (NYSE:WFC) initiated coverage on IDEAYA Biosciences with an overweight rating, setting a price target of $44.00. The firm cited potential opportunities for the company’s drug candidate darovasertib, which could lead to accelerated approval and commercial launch in 2026 for first-line metastatic uveal melanoma. IDEAYA also held its 2025 Annual Meeting of Stockholders, where shareholders elected directors and approved PricewaterhouseCoopers LLP as the independent registered public accounting firm for the year ending December 31, 2025.

The company plans to present clinical efficacy and safety data from trials involving IDE849 at a medical conference in Q3 2025. IDEAYA aims to evaluate IDE849 as a monotherapy and in combination with its Phase 1 PARG inhibitor IDE161, targeting various DLL3 upregulated solid tumor types. These developments reflect IDEAYA’s ongoing efforts to advance its precision medicine oncology programs.

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