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On Monday, Morgan Stanley (NYSE:MS) adjusted its outlook on Bicycle Therapeutics (NASDAQ:BCYC) shares, raising the price target to $17 from $15, while keeping an Equal-weight rating on the stock. The firm’s analysts cited a valuation disconnect as a reason for the adjustment, in anticipation of upcoming key catalysts for the company. Currently trading at $9.04, the stock sits well below analyst targets ranging from $13 to $48, with InvestingPro analysis suggesting the stock is undervalued.
The analysts noted that they are maintaining the Equal-weight rating but have increased the price target to reflect potential growth, signaling a cautious optimism about Bicycle Therapeutics’ future performance. The price target change suggests that Morgan Stanley sees more value in the stock than previously estimated. InvestingPro data reveals the company holds more cash than debt on its balance sheet, though it’s currently burning through cash rapidly. Discover 8 more key insights about BCYC with an InvestingPro subscription.
In their remarks, Morgan Stanley analysts expressed the need for more information before further adjusting their stance. "Maintain our Equal-weight rating while raising our PT, highlighting valuation disconnect ahead of key catalysts," said the analyst. The firm is looking forward to receiving more details on the timing of Duravelo-2 response data and clarity on pipeline prioritization.
Bicycle Therapeutics is at a pivotal point, with the investment community closely watching for the Duravelo-2 response data. This data is significant as it could provide insights into the efficacy of the company’s therapies and influence the direction of its drug development pipeline.
The market will be monitoring how Bicycle Therapeutics prioritizes its pipeline, as this will indicate the strategic direction of the company and potentially impact its stock value. Investors are likely to pay close attention to any updates that could confirm Morgan Stanley’s expectations of upside realization for the company. Despite a significant 60% decline over the past six months, the stock has shown recent momentum with a 10.7% gain in the past week. Access the complete BCYC financial health analysis and detailed Pro Research Report through InvestingPro.
In other recent news, Bicycle Therapeutics disclosed its first-quarter financial results for 2025, highlighting a strong cash reserve of $792.9 million, bolstered by non-dilutive funding from partnerships. The company also launched the Phase 1/2 Duravelo-3 trial targeting NECTIN4-amplified breast cancer. Bicycle Therapeutics is progressing with its clinical pipeline, including the pivotal trial for zelenectide pevedotin and the BRC proof of concept. Analyst firms have adjusted their outlooks on the company, with Citizens JMP reducing the stock price target from $26 to $22 while maintaining a Market Outperform rating. Meanwhile, Jefferies lowered its price target from $53 to $42 but reaffirmed a Buy rating, citing promising Phase 1 data for Zele+pembo in urothelial carcinoma. Rodman & Renshaw kept a Buy rating with a $33 price target, focusing on the company’s progress in treatments for solid tumors. Bicycle Therapeutics announced leadership changes, with Felix J. Baker, Ph.D., becoming chairman of the Board of Directors. The company aims to strengthen its oncology expertise with new board members and executive appointments.
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