Ideaya Biosciences’ Stock (IDYA) Added To Focus List – Analysts Growing Increasingly Bullish

Ideaya Biosciences' stock (IDYA) has been boosted by recent analyst revisions during the recent rally, yet none more bullish than today's update from JPMorgan, adding to what was an already aggressive target.

Analyst Anupam Rama raised the firm's price target on Ideaya to $72 from $66, reiterating an Overweight rating and adding the stock to its Analyst Focus List as a top growth pick.

With the stock currently trading at $24.50, down 42% in the past 12 months, the revised call from JPMorgan is nothing short of aggressive, and adds to their street high target.

JPMorgan's optimism is largely fueled by the potential of darovasertib, Ideaya's lead drug candidate, particularly in the treatment of uveal melanoma, a rare and aggressive form of eye cancer. Rama believes that darovasertib's success in this indication alone could propel the stock price into the mid-$30s to low-$40s across various clinical settings.

This projection underscores the significant market opportunity Ideaya is poised to capture if darovasertib demonstrates compelling efficacy and receives regulatory approval.

The analyst upgrade comes at a time when Ideaya’s stock has shown signs of recovery after experiencing a pullback from its 2024 highs. While the stock closed at $43.05 on July 31, 2024, it has since faced headwinds.

However, recent trading activity indicates a positive shift, with the stock rising in 6 out of the last 10 sessions and rallying 16.56% over the past month of trading. This recent uptrend has pushed the stock price above both its 50-day and 200-day simple moving averages (SMAs), which stand at $21.27 and $22.82, respectively.

While JPMorgan's outlook is decidedly positive, other analysts have presented a more nuanced view. Goldman Sachs, for instance, reinstated coverage of Ideaya a couple of weeks ago with a Neutral rating and a price target of $25, suggesting a more cautious approach. The firm anticipates that 2025 will be a pivotal year for Ideaya as it focuses on executing strategic plans.

Wells Fargo initiated coverage of Ideaya with an Overweight rating and a price target of $44 back at the end of June. RBC Capital issued an “Outperform” rating, and TD Cowen assigned a “Buy” rating, indicating a generally positive sentiment among analysts regarding Ideaya's prospects. The average 12-month price target among Wall Street analysts suggests a substantial upside potential from current levels.

While the recent analyst optimism and positive technical indicators are encouraging, it is important to conduct thorough due diligence and carefully consider the risks and uncertainties inherent in the biotechnology sector.