Piper Sandler maintains Cogent stock rating ahead of pivotal trial data

Piper Sandler reiterated its Overweight rating and $24.00 price target on Cogent Biosciences (NASDAQ:COGT) Monday as the company approaches a crucial data readout for its drug bezuclastinib. Currently trading at $7.03, the stock sits well below analysts’ average price target range of $7-25, with InvestingPro data showing a favorable consensus recommendation of 1.91 (where 1 is Strong Buy).

The research firm highlighted the upcoming July results from the SUMMIT Part 2 trial, which will evaluate bezuclastinib in non-advanced systemic mastocytosis (non-AdvSM). Piper Sandler views the drug’s profile in this indication as "differentiated and best-in-class." The company maintains a strong financial position with more cash than debt and a healthy current ratio of 5.13x, providing runway for its clinical programs.

The firm outlined specific benchmarks for success, including a greater than 50% higher placebo-adjusted benefit on total symptom score compared to competitor avapritinib, with approximately 10% or fewer Grade 3 ALT/AST elevations and no cases of liver injury.

Piper Sandler noted these expectations align with management’s recently articulated goals and believes investors broadly agree on these success metrics. The firm stated that despite Cogent shares rising approximately 48% in the past month, the risk/reward profile remains "very favorable."

Beyond the SUMMIT data, Cogent faces two additional pivotal readouts later this year in advanced systemic mastocytosis (AdvSM) and gastrointestinal stromal tumor (GIST) indications, according to the research note. InvestingPro subscribers have access to 8 additional key insights about Cogent’s financial health and market position, helping investors make more informed decisions ahead of these crucial catalysts.

In other recent news, Cogent Therapeutics reported a net loss of $0.52 per share for the first quarter of 2025, which was narrower than H.C. Wainwright’s forecast of $0.65 per share. The company’s research and development expenses amounted to approximately $63.0 million, while selling, general, and administrative expenses were around $11.9 million. These figures diverged from H.C. Wainwright’s estimates, which predicted R&D expenses of $3.0 million and SG&A expenses of $12.0 million. As of the quarter’s end, Cogent held approximately $245.7 million in cash and equivalents, which H.C. Wainwright suggests should support operations until late 2026. The firm has adjusted its projection for Cogent’s full-year 2025 net loss to $2.24 per share, down from the prior estimate of $2.65 per share. Additionally, H.C. Wainwright revised its price target for Cogent shares to $12 from $14, while maintaining a Buy rating on the stock. This revision considers a projected equity raise in the fourth quarter of 2025. Despite the reduced price target, the firm maintains a positive outlook on Cogent’s stock performance over the next year.

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