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H.C. Wainwright Maintains Buy Rating on Day One Biopharmaceuticals (DAWN), Keeps PT

On June 2, analyst Andres Y. Maldonado from H.C. Wainwright maintained a Buy rating on Day One Biopharmaceuticals, Inc. (NASDAQ:DAWN), retaining a price target of $36.00.

The analyst based the rating update on the recent FDA approval of Ojemda (tovorafenib) for BRAF-altered, relapsed, or refractory pediatric low-grade glioma (pLGG). The approval marks a significant milestone for Day One Biopharmaceuticals, Inc. (NASDAQ:DAWN), resulting in a promising stage for its commercial launch.

A close-up of a scientist in a laboratory environment, working on a biopharmaceutical product candidate.

The analyst reasoned that the company has optimistic revenue expectations for 2025, supported by longer treatment durations and an expanding market. Its addressable market has reached a notable 2,000-3,000 patients in the US alone.

Maldonado further supported the Buy rating by citing the potential for front-line use, pending results from the FIREFLY-2 study, which evaluates the efficacy, safety, and tolerability of tovorafenib as monotherapy.

He said that the ASCO 2025 data offers compelling evidence for the drug’s efficacy and safety, with a high patient compliance rate and manageable side effects. It also demonstrates that the effect on growth is reversible, making it significant for the long-term viability of treatment.

The analyst also reasoned that the market has an unmet need and readiness for the drug, and the initial market uptake of 1,600 prescriptions and net sales worth over $57.2 million in 2024 corroborate this need. The growing prescriber confidence and robust pricing strategy thus support the optimistic outlook.

Day One Biopharmaceuticals, Inc. (NASDAQ:DAWN) develops and commercializes targeted therapies for genetically defined cancers in patients of all ages. Its products include DAY101 and pimsertib.

While we acknowledge the potential of DAWN as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than DAWN and that has 100x upside potential, check out our report about the cheapest AI stock.

READ NEXT: 10 Best Debt Free IT Penny Stocks To Buy and 10 Unstoppable Stocks That Could Double Your Money.

Disclosure: None.

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