Stock market today: Stocks fall as investors rotate out of tech into Jackson Hole
Investing.com - Wells Fargo (NYSE:WFC) initiated coverage on Ideaya Biosciences (NASDAQ:IDYA) with an overweight rating and a price target of $44.00 on Thursday. The research firm cited potential opportunities for the company’s drug candidate darovasertib that are not reflected in the current stock price. According to InvestingPro data, IDYA maintains a strong financial position with more cash than debt and a healthy current ratio of 13.9x, suggesting ample resources to fund its clinical programs.
Ideaya shares have declined 15% year-to-date, underperforming the broader biotech sector as measured by the XBI index, which is down 8% during the same period. Wells Fargo believes this performance gap creates an attractive entry point for investors. InvestingPro analysis shows the stock has demonstrated strong momentum over the past three months, with analyst targets ranging from $27 to $66, suggesting significant potential upside from current levels.
The firm highlighted several upcoming catalysts over the next 12 months, including multiple data readouts for darovasertib in both metastatic and neoadjuvant settings. These results could boost investor confidence in the drug’s potential for treating uveal melanoma (UM).
Wells Fargo analysts estimate a 65% probability that darovasertib’s pivotal metastatic progression-free survival study will yield positive results. A favorable outcome could lead to accelerated approval and commercial launch in 2026 for first-line metastatic uveal melanoma.
The $44 price target represents significant upside potential from Ideaya’s current trading levels, reflecting Wells Fargo’s optimistic outlook on the company’s clinical pipeline and commercial prospects.
In other recent news, IDEAYA Biosciences has received FDA clearance for a Phase 1 clinical trial of its investigational drug IDE849, aimed at treating various solid tumors, including small cell lung cancer and neuroendocrine tumors. This development follows promising preliminary results from a multi-site trial, where IDE849 demonstrated multiple partial responses. Additionally, IDEAYA is advancing its Phase 3 clinical trial for darovasertib as a neoadjuvant therapy for primary uveal melanoma, with primary endpoints focused on eye preservation and visual acuity maintenance. The trial will involve approximately 520 patients, divided into two cohorts. In corporate governance updates, IDEAYA shareholders elected Jeffrey L. Stein and Scott W. Morrison as Class III directors at their annual meeting, while also approving PricewaterhouseCoopers LLP as the company’s independent auditor. Dr. Susan L. Kelley will not seek re-election to the Board but will continue to serve as Chair of IDEAYA’s new Clinical Advisory Board. The company plans to reduce its Board size from eight to seven directors following the annual meeting.
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