Nuvalent (NUVL – Research Report), the Healthcare sector company, was revisited by a Wall Street analyst on November 14. Analyst Christopher Liu from Leerink Partners remains neutral on the stock and has a $69.00 price target.
Christopher Liu’s decision to maintain a ‘Hold’ rating on Nuvalent’s stock is a result of various factors. The primary reason being the potential future of NVL-655, an ALK inhibitor. Nuvalent plans to position this asset in the 2L ALK+ non-small cell lung cancer (NSCLC) setting, which is not surprising as it could encompass both the lorlatinib-naive and pretreated indications. While the preliminary data indicate the potential of NVL-655 to be a top-tier asset, Liu is waiting for further progression-free survival (PFS) data and more information on its longevity before becoming more constructive.
Another point to consider is the shifting treatment paradigm in the ALK+ metastatic NSCLC patient population as Alecensa moves from the 1L metastatic setting to the adjuvant setting. This could potentially impact the size of the opportunity for NVL-655. Additionally, the forthcoming potential approval of repotrectinib, a competitor to NVL-520, could indirectly affect NUVL’s shares. Lastly, Liu acknowledges the increase in Nuvalent’s cash reserves, which, after a recent public common stock offering, could provide the company with a financial runway until 2027. Nevertheless, he suggests that updates for NVL-520 and NVL-330 are in line with expectations, with no major surprises expected until possibly 2024.
Liu covers the Healthcare sector, focusing on stocks such as Nuvalent, IDEAYA Biosciences, and Exelixis. According to TipRanks, Liu has an average return of -24.5% and a 26.39% success rate on recommended stocks.
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Nuvalent (NUVL) Company Description:
Nuvalent Inc is a biopharmaceutical company focused on creating precisely targeted therapies for patients with cancer, designed to overcome the limitations of existing therapies for clinically proven kinase targets.
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