UBS reiterates Buy rating on Ideaya Biosciences stock with $50 target

Published 23/09/2025, 14:46
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Investing.com - UBS maintained its Buy rating and $50.00 price target on Ideaya Biosciences (NASDAQ:IDYA) in a research note released Tuesday. According to InvestingPro data, the stock has shown remarkable momentum with a 41% gain over the past six months, while maintaining a strong financial position with more cash than debt on its balance sheet.

UBS analyst David Dai identified Ideaya Biosciences as a top pick in SMID Biotechnology, highlighting the company’s lead asset darovasertib (daro) as a potentially transformative therapy for uveal melanoma that remains underappreciated by the market. With a market capitalization of $2.26 billion and analyst targets ranging from $27 to $74, InvestingPro subscribers can access 10+ additional exclusive insights about IDYA’s growth potential.

The firm estimates darovasertib could reach $1.3 billion in peak sales potential, significantly higher than the $800 million peak sales currently priced into the stock. UBS cited the drug’s clinical efficacy, safety profile, and convenient oral dosing as advantages over current standard treatments in front-line and neoadjuvant uveal melanoma.

Several near-term catalysts over the next six months could drive significant upside for the stock, according to UBS. These include a Phase 2 readout in neoadjuvant enucleation cohort at the ESMO medical conference (October 17-21) and overall survival data in first-line metastatic uveal melanoma at the SMR medical conference (October 25-28).

The firm also highlighted pivotal Phase 3 data in first-line metastatic uveal melanoma (HLA-A2-) expected in Q4 2025 to Q1 2026 as another potential catalyst for the stock.

In other recent news, Ideaya Biosciences announced promising results from its Phase 1/2 trial for urothelial cancer treatment. The trial, which combines IDE397 with Gilead’s Trodelvy, reported a 57% overall response rate at the higher dose and 33% at the lower dose. Additionally, initial data from an early-stage trial of IDE849 for small cell lung cancer showed an 80% overall response rate, with a 70% confirmed response rate. Analysts have responded positively to these developments; Mizuho reiterated an Outperform rating with a $44 price target, while RBC Capital raised its target from $36 to $38, maintaining an Outperform rating. JMP Securities also reiterated its Market Outperform rating with a $45 price target, citing encouraging data from various clinical programs. These updates followed Ideaya’s recent R&D Day, where the company shared positive clinical updates across multiple programs. Despite this, the company’s stock experienced a decline earlier in the week, even as analysts remained optimistic about its future prospects.

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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