Piper Sandler initiates Nuvalent stock coverage with Overweight rating

Published 19/08/2025, 12:08
Piper Sandler initiates Nuvalent stock coverage with Overweight rating

Investing.com - Piper Sandler initiated coverage on Nuvalent (NASDAQ:NUVL), a precision oncology company with a $5.4 billion market cap, with an Overweight rating and a $112.00 price target on Tuesday. According to InvestingPro data, the stock is currently trading above its Fair Value, with analyst targets ranging from $100 to $140.

The research firm views Nuvalent as a precision oncology company with potential for near-term value creation over the next 18 months, despite investors seemingly waiting for first-line ALK data expected in a few years. The company maintains a strong financial position with more cash than debt and a robust current ratio of 13.57, though InvestingPro analysis indicates it’s not currently profitable.

Piper Sandler highlighted three upcoming catalysts for the stock, including updated Phase II neladalkib data in second-line and beyond ALK NSCLC expected later this year, which will help establish differentiation against competing treatments.

The firm also noted initial commercial sales from zidesamtinib anticipated in 2026 in the ROS1 market, which it believes investors currently undervalue.

Potential initial data for NVL-330 in HER2-positive NSCLC expected next year represents another catalyst that could drive the stock, according to Piper Sandler’s analysis.

In other recent news, Nuvalent, Inc. has initiated a rolling New Drug Application (NDA) submission for zidesamtinib, aimed at treating advanced ROS1-positive non-small cell lung cancer (NSCLC) in patients previously treated with tyrosine kinase inhibitors. The FDA has accepted this application for the Real-Time Oncology Review pilot program, facilitating earlier evaluation of efficacy and safety results. Additionally, the company is set to present pivotal data for zidesamtinib at the IASLC 2025 World Conference on Lung Cancer, featuring results from the ARROS-1 Phase 1/2 clinical trial. In another development, Nuvalent has started its Phase 3 ALKAZAR trial for neladalkib, targeting advanced ALK-positive NSCLC patients who have not received prior TKI treatment. This trial will compare neladalkib to alectinib, a standard treatment, with the first patient already dosed. Furthermore, Goldman Sachs has initiated coverage on Nuvalent with a Buy rating, citing the promising efficacy and safety profile of zidesamtinib as demonstrated in early-phase studies. These developments reflect Nuvalent’s ongoing efforts in advancing lung cancer treatments.

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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