Raymond James reiterates Strong Buy on Edgewise Therapeutics stock with $46 price target

Published 07/08/2025, 16:32
Raymond James reiterates Strong Buy on Edgewise Therapeutics stock with $46 price target

Investing.com - Raymond (NSE:RYMD) James has reiterated its Strong Buy rating and $46.00 price target on Edgewise Therapeutics (NASDAQ:EWTX) following the company’s second-quarter financial results and corporate update. The stock, currently trading at $12.89, appears fairly valued according to InvestingPro analysis. Notably, five analysts have recently revised their earnings estimates upward, with price targets ranging from $14 to $51.

The research firm noted that timing for key catalysts remains on track, highlighting the upcoming EDG-7500 Phase 2 CIRRUS-HCM Part D results expected in the fourth quarter of 2025. Earlier data from Parts B/C of the trial in April 2025 showed encouraging efficacy signals, though investors expressed concerns about a potential atrial fibrillation signal in approximately 14% of patients. This uncertainty has contributed to the stock’s significant decline, with InvestingPro data showing a 48.75% drop over the past six months.

Raymond James believes the 12-week CIRRUS-HCM Part D updates will provide clarity on the atrial fibrillation signal and help identify an appropriate dosing strategy for Phase 3 trials in o/nHCM planned to begin in 2026. The firm will be monitoring for consistent efficacy with minimal impact on left ventricular ejection fraction and a reduced atrial fibrillation rate.

The company’s sevasemten Phase 3 GRAND CANYON trial results for Becker muscular dystrophy remain on track for the fourth quarter of 2026. Edgewise plans to meet with the FDA in the fourth quarter of 2025 to discuss Phase 3 design for sevasemten in Duchenne muscular dystrophy before initiating pivotal trials in 2026.

Edgewise reported approximately $594 million in cash, cash equivalents, and marketable securities as of June 30, 2025, and plans to begin dosing in a Phase 1 trial of EDG-15400, a novel candidate for heart failure treatment, during the third quarter of 2025. InvestingPro analysis highlights the company’s strong liquidity position, with liquid assets exceeding short-term obligations and minimal debt exposure. For deeper insights into Edgewise’s financial health and growth prospects, including additional ProTips and comprehensive analysis, check out the full Pro Research Report available on InvestingPro.

In other recent news, Edgewise Therapeutics reported a narrower-than-expected loss for the second quarter of 2025. The company posted a quarterly loss of $0.34 per share, which was significantly better than analysts’ expectations of a $0.42 per share loss. This financial performance was accompanied by a strong cash position, with approximately $594 million as of June 30, 2025. This cash reserve is expected to support the company’s ongoing clinical programs. These developments come as Edgewise continues to focus on its muscle disease treatments. The positive earnings report has been well-received by investors. Analyst reactions to the company’s recent financial results have not been detailed, but the performance has been noted in the investment community. These updates reflect recent progress and financial health for Edgewise Therapeutics.

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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