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Investing.com - Citizens raised its price target on Sagimet Biosciences Inc (NASDAQ:SGMT) to $35.00 from $33.00 on Friday, while maintaining a Market Outperform rating on the stock. Currently trading at $7.74, SGMT shows significant upside potential against the new target, with analyst consensus strongly favoring a buy recommendation. According to InvestingPro data, the stock has delivered an impressive 149.68% return over the past six months.
The price target increase follows Sagimet’s recent poster presentations at the Liver Meeting, which highlighted data from the Phase 2b FASCINATE trial for its drug denifanstat in treating advanced MASH (metabolic dysfunction-associated steatohepatitis).
The trial data showed that denifanstat significantly improved fibrosis in advanced MASH patients, with an 85% response rate for one-stage or greater regression, compared to 33% for placebo. The drug also reduced multiple fibrotic biomarkers.
Sagimet also presented analyses using computational pathology methods (FibroCAM, FibroDATA) that identified fibrosis phenotypes and demonstrated that higher response prediction scores in F2 and F3 patients correlated with treatment response, supporting the predictive value of these methods across fibrosis stages.
The company currently has two Phase 1 trials in healthy volunteers ongoing, including one studying denifanstat in combination therapy. With a market cap of $251.72 million, Sagimet appears overvalued according to InvestingPro Fair Value metrics, despite its clinical progress. Investors should note SGMT’s high volatility (Beta 3.31) and upcoming earnings report on November 20. InvestingPro offers additional insights through its comprehensive Research Report, available for Sagimet and 1,400+ other US equities.
In other recent news, Sagimet Biosciences Inc. reported that its fatty acid synthase inhibitor, denifanstat, achieved all primary and secondary endpoints in a Phase 3 clinical trial for moderate to severe acne vulgaris conducted in China. The trial, which enrolled 480 patients, showed that denifanstat significantly reduced both inflammatory and non-inflammatory lesions compared to placebo. Additionally, Sagimet Biosciences received a Buy rating initiation from Clear Street, highlighting the potential of denifanstat as a valuable asset with a price target of $29.00. In another development, Sagimet announced the appointment of KPMG LLP as its new independent auditor, replacing Deloitte & Touche LLP. The board’s decision follows Deloitte’s audit reports, which were free of adverse opinions or disclaimers. Furthermore, Sagimet has entered into a $75 million at-the-market sales agreement with Leerink Partners LLC, allowing the company to sell its Series A common stock. Leerink Partners will act as the sales agent, earning a commission of up to 3.0% of the gross proceeds from each sale.
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