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Piper Sandler reiterated its Overweight rating and $51.00 price target on Edgewise Therapeutics (NASDAQ:EWTX) Wednesday, maintaining the biotech company as one of its "2025 best ideas." According to InvestingPro data, this target represents significant upside from the current trading price of $15.50, with the stock down over 48% in the past six months despite strong analyst support.
The research firm expressed confidence that sevasemten’s Becker muscular dystrophy (BMD) regulatory update expected in the second quarter of 2025 will indicate FDA approval to file for accelerated approval, potentially driving share gains as investors gain clarity on next steps.
Piper Sandler noted that investors "may not yet appreciate sevasemten’s opportunity in BMD," suggesting the upcoming regulatory milestone could increase market awareness of the treatment’s potential.
The firm also highlighted EDG-7500’s 12-week Cohort D topline results expected in the second half of 2025 as another key catalyst, with potential to establish no ECHO-based titrations, which would differentiate it from cardiac myosin inhibitors (CMIs) in treating hypertrophic cardiomyopathy (HCM).
Piper Sandler specifically mentioned EDG-7500’s "unique value proposition" in HCM, particularly for non-obstructive hypertrophic cardiomyopathy (nHCM), which it described as an "untapped population."
In other recent news, Edgewise Therapeutics reported first-quarter financial results for 2025, which aligned with analyst expectations. The company posted a net loss of $40.8 million, or $0.43 per share, matching the consensus estimate. Research and development expenses saw a slight increase to $36.8 million, attributed to higher personnel costs and clinical development activities. Edgewise ended the quarter with $436.4 million in cash and marketable securities, bolstered by a $200 million stock offering in early April, bringing its pro-forma cash balance to over $624 million.
RBC Capital maintained an Outperform rating on Edgewise Therapeutics, with a price target of $48.00, expressing confidence in the potential of sevasemten, a drug for Becker muscular dystrophy. While RBC Capital analysts consider accelerated approval for sevasemten unlikely, they acknowledge the possibility of a quicker market entry. They anticipate a launch in 2028 but see potential upside if the FDA decides on an accelerated path. The company plans to report data from two Phase 2 trials of sevasemten in the second quarter of 2025, along with additional data from its hypertrophic cardiomyopathy program later in the year.
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