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BMO Believes Market Undervalues Terns Pharmaceuticals (TERN) Despite Strong Trial Data

Terns Pharmaceuticals Inc. (NASDAQ:TERN) is among the hottest SMID-cap stocks so far in 2025. On November 17, Evan Seigerman of BMO Capital Markets raised his price target on the stock from $22 to $30, while maintaining an Outperform rating.

The analyst noted that the market continues to underestimate the potential of the company’s drug candidate, TERN-701, in chronic myeloid leukemia (CML). He based this assertion on the Phase 1 CARDINAL data, which demonstrated clear differentiation from current treatment options.

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Earlier, on November 3, Terns Pharmaceuticals Inc. (NASDAQ:TERN) announced Phase 1 results showing a 64% molecular response (MMR) rate by 24 weeks in patients with resistant or relapsed chronic myeloid leukemia (CML), a rate notably higher than that of current treatments. The company will present additional data at the 67th Annual Meeting of the American Society of Hematology (ASH) in Orlando, Florida, in December.

On the success, Amy Burroughs, chief executive officer of Terns, stated:

“We are pleased that data from our CARDINAL trial have been selected for oral presentation at ASH. These data further validate the potential of TERN-701 to be a new, game-changing therapy for CML,” She further added, “These emerging data strongly reinforce our conviction that TERN-701 has the potential to be a best-in-disease therapy, with broad opportunity across all CML treatment lines. We look forward to sharing additional data in December.”

The results prompted a strong investor response, as the stock skyrocketed nearly 95% between November 3 and 4.

Terns Pharmaceuticals Inc. (NASDAQ:TERN) is a clinical-stage biopharmaceutical company developing innovative therapies for cancer.

While we acknowledge the risk and potential of TERN as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than TERN and that has 10,000% upside potential, check out our report about this cheapest AI stock.

READ NEXT: 30 Most Fantastic Stocks Every Investor Should Pay Attention To and 13 Best Stocks to Buy According to Citadel LLC.

Disclosure: None. This article is originally published at Insider Monkey.

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