Stifel cuts Black Diamond stock target to $15, maintains buy

Published 07/03/2025, 15:52
Stifel cuts Black Diamond stock target to $15, maintains buy

On Friday, Stifel analysts reduced the price target for Black Diamond Therapeutics (NASDAQ:BDTX) shares to $15.00 from the previous $16.00, while still recommending the stock as a Buy. The stock, currently trading near its 52-week low of $1.77, has experienced significant volatility with a 65% decline over the past six months. According to InvestingPro analysis, the company appears slightly undervalued at current levels. The adjustment follows the anticipation of key data from a phase 2 cohort study of BDTX-1535, which is expected to be a significant catalyst in the second quarter of 2025.

The study focuses on first-line treatment for EGFRm NSCLC with non-classical mutations, involving approximately 20 patients. According to Stifel analysts, Black Diamond (NASDAQ:CLAR)’s management has not changed their preview of the upcoming data. The interim durability of the treatment will be scrutinized, especially as patients have already undergone at least two 6-week scans. The results are set to be unveiled at a company event and are projected to facilitate regulatory discussions by the end of the year, with the aim of commencing a pivotal trial in 2026.

Additionally, Black Diamond Therapeutics plans to complete the first-line cohort with a total of 40 patients by the end of this year. The company’s management indicated they are actively seeking alternative business development opportunities to finance the trial, while maintaining cash guidance into the fourth quarter of 2026. InvestingPro data shows the company maintains a strong liquidity position with a current ratio of 5.55, though it’s worth noting the company is currently burning through cash rapidly. InvestingPro subscribers have access to 11 additional key insights about BDTX’s financial health and market position.

The update also included information on the fully-enrolled second and third-line patient cohort, consisting of 83 patients with a mix of classical, non-classical, and C979S mutations. The updated data for these cohorts are now expected to be available in the second half of 2025. Furthermore, Black Diamond reintroduced the possibility of developing treatments for glioblastoma (GBM) through an investigator-sponsored study, which will be conducted without incurring additional costs to the company. With analyst price targets ranging from $9 to $20, and the company holding more cash than debt on its balance sheet, investors seeking detailed financial analysis can access comprehensive metrics and valuations through InvestingPro.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers
© 2007-2025 - Fusion Media Limited. All Rights Reserved.