Jones Trading sets OnKure stock Buy rating, $32 target

Published 28/01/2025, 22:56
Jones Trading sets OnKure stock Buy rating, $32 target

Tuesday, Jones Trading initiated coverage on OnKure Therapeutics Inc. (NASDAQ:OKUR) with a Buy rating and a price target of $32.00. Currently trading at $5.00, the stock sits well below analysts’ target range of $31-40. The firm highlighted OnKure Therapeutics as a clinical-stage company focused on precision oncology, specifically developing targeted PI3Kα inhibitors for the treatment of breast cancer and other solid tumors with PIK3CA gene mutations. InvestingPro analysis reveals 12 additional investment insights available for subscribers.

The interest in the PI3Kα inhibitor space has intensified following the acquisition of Scorpion Therapeutics by Lilly earlier in January 2025 for an amount reaching $2.5 billion, which was based on promising Phase 1 data. With a current market capitalization of $67.2 million and an EBITDA of -$45.1 million in the last twelve months, OnKure’s leading compound, OKI-219, is designed as a point-mutation specific inhibitor targeting PI3Kα with the H1047R mutation.

OnKure Therapeutics aims to address the tolerability issues commonly associated with this class of drugs by creating targeted inhibitors that do not affect the wildtype PI3Kα. Jones Trading’s analysis suggests that OnKure’s strategic approach to drug development could offer a significant advantage in the competitive oncology market.

The analyst at Jones Trading provided a statement summarizing the potential of OnKure Therapeutics, emphasizing the company’s focus on next-generation targeted therapies and the importance of their lead asset, OKI-219, in the landscape of precision oncology treatments.

Investors are encouraged to keep an eye on OnKure as it progresses with its clinical trials and seeks to carve out a niche within the oncology sector with its specialized PI3Kα inhibitors. The company’s stock, which has declined 72% over the past six months, is expected to respond to these developments and the growing interest in targeted oncology treatments. For comprehensive financial health analysis and detailed metrics, consider subscribing to InvestingPro.

In other recent news, OnKure Therapeutics reported positive preliminary data from its ongoing trial of the cancer drug OKI-219, with the drug demonstrating robust antitumor activity and well-tolerated across all doses. The company also announced a merger with Reneo Pharmaceuticals , resulting in OnKure becoming a direct subsidiary of Reneo. Analysts from Leerink Partners and Oppenheimer have initiated coverage on OnKure, assigning an Outperform rating, reflecting confidence in the potential of the company’s lead asset, OKI-219. Furthermore, OnKure announced a change in its independent registered public accounting firm, transitioning from Ernst & Young LLP to KPMG LLP. These are the recent developments that have occurred in the company.

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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