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Investing.com - Raymond (NSE:RYMD) James initiated coverage on Edgewise Therapeutics (NASDAQ:EWTX) with a Strong Buy rating and set a price target of $46.00. The stock, currently trading at $13.95, has analyst targets ranging from $14 to $51, with InvestingPro data showing strong overall analyst consensus supporting the bullish outlook.
The research firm views Edgewise Therapeutics as offering "a highly attractive risk/reward skew at current prices" according to its analysis of the company’s prospects.
Raymond James highlighted upcoming Phase 2 CIRRUS-HCM Part D results expected in the second half of 2025 as a potential catalyst that could "meaningfully de-risk" the company’s EDG-7500 drug candidate in obstructive hypertrophic cardiomyopathy (oHCM).
The firm noted that results from Parts B and C of the study were "encouraging" with "solid efficacy" and "minimal LVEF % impact," suggesting a path forward with potential to avoid a Risk Evaluation and Mitigation Strategy (REMS).
While Raymond James acknowledged a "possible a-fib signal" that "should be manageable," it also mentioned that the opportunity in non-obstructive hypertrophic cardiomyopathy (nHCM) is "more difficult to de-risk, but completely out of the stock" valuation.
In other recent news, Edgewise Therapeutics announced positive results for its experimental drug sevasemten, which demonstrated sustained disease stabilization in Becker muscular dystrophy patients for up to three years. This was observed in the MESA open-label extension trial, where patients maintained stable North Star Ambulatory Assessment scores over extended periods. Despite these promising results, the U.S. Food and Drug Administration (FDA) deemed the CANYON trial data insufficient for accelerated approval, suggesting a traditional approval pathway instead. The FDA recommended that Edgewise continue sharing MESA data and natural history modeling while awaiting results from the ongoing GRAND CANYON pivotal trial. In terms of analyst opinions, H.C. Wainwright initiated coverage on Edgewise Therapeutics with a Buy rating, setting a price target of $42.00. RBC Capital reiterated its Outperform rating, emphasizing the potential of sevasemten in Becker Muscular Dystrophy, with a price target of $48.00. However, Stifel maintained a Hold rating with a $16.00 price target, expressing concerns about the clinical program’s data interpretation challenges. These developments reflect a mix of optimism and caution among analysts and regulatory bodies regarding Edgewise’s progress.
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