Truist Securities initiates Terns Pharmaceuticals stock with Buy rating

Published 14/10/2025, 21:50
Truist Securities initiates Terns Pharmaceuticals stock with Buy rating

Investing.com - Truist Securities initiated coverage on Terns Pharmaceuticals (NASDAQ:TERN) with a Buy rating and a price target of $20.00 on Tuesday. The stock, which has surged nearly 255% over the past six months, currently trades at $8.08. According to InvestingPro data, analysts maintain a strong buy consensus with price targets ranging from $7.44 to $34.00.

The research firm highlighted the company’s lead asset in rare blood cancer treatment, which it describes as potentially best-in-class with promising Phase 1 and preclinical data. This asset targets what Truist Securities estimates as a nearly $1 billion market opportunity. With a current market capitalization of $707 million and a strong financial health score according to InvestingPro, Terns maintains a solid foundation for development, holding more cash than debt on its balance sheet.

Truist Securities also noted Terns’ second asset, an oral GLP-1 agonist that has been derisked by already approved drugs in its class, suggesting potential as a safe oral option for obesity treatment.

The firm pointed to additional partnerable assets supported by early-stage data in multibillion-dollar metabolic opportunities including MASH (Metabolic dysfunction-Associated SteatoHepatitis) and obesity, while viewing the company’s reprioritization toward oncology as a focused and strategically feasible pivot.

According to Truist Securities’ analysis, Terns’ lead asset has an unadjusted 2036 peak market opportunity of $1.7 billion, potentially translating to approximately $900 million in peak adjusted revenues for the company, which the firm believes is not reflected in current stock levels.

In other recent news, Terns Pharmaceuticals has been in the spotlight following Barclays’ initiation of coverage with an Overweight rating and a $15.00 price target. The research firm emphasized TERN-701, the company’s lead asset, as a third-generation allosteric inhibitor being developed for chronic myeloid leukemia (CML). Barclays notes that this asset has a differentiated profile compared to existing treatments. Additionally, Terns Pharmaceuticals announced plans to host an investor webinar on September 3, 2025, to discuss TERN-701. The webinar will cover the drug’s profile, benchmarks for upcoming Phase 1 data, and its role in the CML treatment landscape. Investors and stakeholders are keenly anticipating the data release in the fourth quarter of 2025. This event is expected to provide further insights into TERN-701’s potential impact on the market.

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