Scotiabank sets $50 target for Edgewise Therapeutics stock

Published 07/03/2025, 14:00
Scotiabank sets $50 target for Edgewise Therapeutics stock

On Friday, Scotiabank (TSX:BNS) initiated coverage on Edgewise Therapeutics (NASDAQ:EWTX) with a Sector Outperform rating and a price target of $50.00 per share, significantly above the current trading price of $28.13. According to InvestingPro data, analyst targets range from $30 to $56, with a strong consensus recommendation of 1.62 (where 1 is a Strong Buy). In their coverage, Scotiabank highlighted the potential for Edgewise Therapeutics’ stock to maintain its positive trajectory as the company progresses its product pipeline towards commercialization within the current year.

Scotiabank’s analysis points to promising early data from Edgewise Therapeutics’ drug candidates, including sevasemten for Becker muscular dystrophy (BMD) and Duchenne muscular dystrophy (DMD), as well as EDG-7500 for both obstructive and non-obstructive hypertrophic cardiomyopathy (oHCM and nHCM). The research firm believes that these drug candidates could lead to multi-billion-dollar sales opportunities. InvestingPro data shows the company maintains a strong financial position with a current ratio of 19.93 and more cash than debt on its balance sheet, providing runway for its development programs.

The company’s move towards commercialization is a significant step in its growth strategy. Scotiabank’s optimistic outlook on Edgewise Therapeutics is based on the anticipated commercial and therapeutic potential of its pipeline products. The firm’s Sector Outperform rating suggests that they expect the company’s stock performance to be better than the average performance within the sector.

The $50.00 price target set by Scotiabank represents their expectation for the stock’s value over the next year. This target is based on the projected success of Edgewise Therapeutics’ drug candidates and their potential impact on the market, considering the diseases they aim to treat.

Edgewise Therapeutics is focused on developing therapies for serious, rare muscle disorders. Their progress in drug development and the positive data from early trials have positioned them as a company with significant growth potential, as reflected in Scotiabank’s report. The stock has already demonstrated strong momentum with a 60.56% return over the past six months. InvestingPro analysis indicates the stock is currently trading above its Fair Value, with 10+ additional ProTips and a comprehensive Pro Research Report available for deeper insight into the company’s financial health and growth prospects.

In other recent news, Edgewise Therapeutics reported several key developments. JPMorgan analysts have increased their price target for Edgewise Therapeutics to $45, maintaining an Overweight rating due to the company’s diversified approach in treating neuromuscular and cardiovascular conditions. The firm is optimistic about the ongoing phase 2 CIRRUS-HCM study, estimating a 75% chance of favorable outcomes, which has led them to place Edgewise on Positive Catalyst Watch. Additionally, Edgewise Therapeutics announced the promotion of Behrad Derakhshan to Chief Operating Officer, with his new role effective January 8, 2025. Dr. Derakhshan has been with the company since 2020 and previously served as Chief Business Officer. The company also appointed Robert Blaustein as Chief Development Officer, emphasizing their commitment to advancing late-stage clinical development. Meanwhile, Stifel initiated coverage of Edgewise with a Hold rating and a $30 price target, recognizing the potential and risks associated with the company’s clinical-stage assets, EDG-7500 and sevasemten. Furthermore, Piper Sandler highlighted Edgewise Therapeutics as one of the companies with key Phase 2b readouts expected in 2025, indicating potential catalysts that could impact the company’s future.

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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