Nvidia’s results, Tesla’s European sales, Japan trade - what’s moving markets
On Tuesday, Citi reaffirmed its Buy rating and $15.00 price target for Cogent (NASDAQ:COGT). The firm's stance comes in response to Cogent's stock experiencing a nearly 20% drop today. The decline followed the company's announcement of abstracts for the American Society of Hematology (ASH) meeting.
Citi's analysis suggests that the market's reaction is unwarranted, given that the data disclosed has been largely available since last year. The SUMMIT abstract, which focuses on non-advanced systemic mastocytosis (NonAdvSM), did not present any new data. The only patient discontinuation due to elevated ALT levels was already disclosed at the ASH 2023 event.
Furthermore, the APEX abstract, which deals with advanced systemic mastocytosis (ASM), reported one additional patient discontinuation due to ALT/AST elevation. However, Citi notes that the 28% rate of ALT/AST increase in Cogent's study is still favorable compared to Blueprint Medicines (NASDAQ:BPMC)' Ayvakit, which shows 38% of patients experiencing elevated AST and 18% elevated ALT as per its label.
Citi views the current sell-off in Cogent's stock as an overreaction to the ASH abstracts' data disclosures. The firm recommends buying the stock amidst this weakness, indicating confidence in Cogent's value and potential recovery.
In other recent news, Cogent Biosciences has made significant strides in its clinical trials and development pipeline. The company successfully completed patient enrollment for its Phase 3 PEAK trial, which is evaluating bezuclastinib for the treatment of gastrointestinal stromal tumors (GIST), with top-line results expected by the end of 2025. Furthermore, Cogent's SUMMIT trial for nonadvanced systemic mastocytosis is on track to complete enrollment in the first quarter of 2025, with results anticipated in the second half of the same year.
The company has also introduced a new KRAS inhibitor, CGT6737, and a PI3Kα inhibitor, CGT6297, into its developmental pipeline. These inhibitors are designed to offer significant tumor growth inhibition in preclinical models and a better safety profile than existing treatments, respectively. IND-enabling studies for CGT6297 are planned to start in 2025.
Analysts have adjusted their stock price targets and ratings for Cogent following these recent developments. H.C. Wainwright reduced its 12-month price target to $17, but reaffirmed a Buy rating, while Citi raised its price target from $13.00 to $15.00, maintaining a Buy rating. Baird increased its price target to $10.00, keeping a Neutral rating, and Piper Sandler reaffirmed its Overweight rating with a $22.00 price target.
InvestingPro Insights
Recent InvestingPro data provides additional context to Cogent's (NASDAQ:COGT) current market position. Despite the recent stock price drop, Cogent has shown a strong 57.64% price return over the past six months, and an impressive 101.87% year-to-date return. This suggests that the company has been performing well in the market overall, despite short-term fluctuations.
InvestingPro Tips highlight that Cogent holds more cash than debt on its balance sheet and its liquid assets exceed short-term obligations. These factors could provide the company with financial flexibility to navigate through challenging periods, such as the recent stock price decline.
However, it's important to note that Cogent is not currently profitable, with a negative EBITDA of -242.22M USD for the last twelve months as of Q2 2024. This aligns with another InvestingPro Tip indicating that analysts do not anticipate the company to be profitable this year.
For investors seeking a more comprehensive analysis, InvestingPro offers 5 additional tips for Cogent, providing a deeper understanding of the company's financial health and market position.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.