Mizuho reiterates Outperform rating on Ideaya Biosciences stock at $44

Investing.com - Mizuho has reiterated an Outperform rating and $44.00 price target on Ideaya Biosciences (NASDAQ:IDYA) following the company’s R&D Day earlier this week.

The research firm expressed positive impressions after attending presentations featuring Ideaya’s five highest-priority R&D assets, including darovasertib for uveal melanoma, IDE397 for MTAP-deleted solid tumors, IDE849 (a DLL3-TOP1 ADC candidate), IDE161 (a PARG inhibitor), and IDE892 (a PRMT5 inhibitor).

Mizuho increased its probability of success assumption for lead asset darovasertib to 70% from 60% previously in the neoadjuvant uveal melanoma setting, citing supportive comments from a uveal melanoma expert during the event.

The firm noted that Ideaya Biosciences stock has declined 8% following the R&D Day event, creating a potential opportunity for investors.

Mizuho maintained its Outperform rating based on expected near-term pipeline newsflow and potential model upside from pipeline assets not currently included in its valuation model. Despite the recent pullback, IDYA has delivered a strong 34% return over the past six months, reflecting investor confidence in its pipeline potential.

In other recent news, Ideaya Biosciences announced promising results from multiple clinical trials, offering significant insights into their oncology programs. The company reported a 57% overall response rate in its Phase 1/2 trial combining IDE397 with Trodelvy for MTAP-deletion urothelial cancer, with notable responses at higher doses. Additionally, Ideaya shared encouraging data from its Phase 1 trial for small cell lung cancer, where IDE849 achieved an 80% overall response rate. The ongoing Phase 2 OptimUM-09 trial for primary uveal melanoma also showed positive interim results, with 76% of patients experiencing tumor shrinkage.

RBC Capital raised its price target for Ideaya Biosciences from $36 to $38, maintaining an Outperform rating, highlighting the efficacy signals from these trials. Similarly, JMP Securities reiterated its Market Outperform rating with a $45 price target, emphasizing positive data from Ideaya’s various programs. Despite these advancements, Ideaya shares experienced a decline, which analysts did not attribute to the clinical updates. These developments underscore the company’s ongoing efforts in advancing its cancer treatment portfolio.

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