Last Updated: 09 Nov 2024
Executive Summary
Day One Biopharmaceuticals Inc. (DAWN) is a clinical-stage biopharmaceutical company developing targeted therapies for patients with genetically defined cancers. The company's latest stock price is $16.39, with a market capitalization of $1.65 billion. Despite strong revenue growth, the company remains unprofitable, with a negative EPS of -$0.97. Analysts are bullish on the stock, with 10 out of 11 analysts recommending a buy or strong buy rating.
Company Overview
Day One Biopharmaceuticals was founded in 2015 and is headquartered in South San Francisco, California. The company's lead product candidate, DAY101, is a small molecule inhibitor of the KRAS G12C mutation, which is found in approximately 13% of all cancers. DAY101 is currently in Phase II clinical trials for the treatment of non-small cell lung cancer (NSCLC) and colorectal cancer.
Fundamental Analysis
Day One Biopharmaceuticals' revenue has grown significantly in recent years, from $10.5 million in 2021 to $101.9 million in 2023. This growth has been driven by the company's clinical trials and licensing agreements. However, the company remains unprofitable, with an EBITDA of -$205.5 million in 2023.
The company's financial ratios are mixed. The company has a high price-to-sales ratio of 16.21, indicating that investors are willing to pay a premium for its growth potential. However, the company's price-to-book ratio of 2.976 is relatively low, indicating that the stock may be undervalued.
Technical Analysis
The stock price of Day One Biopharmaceuticals has been trending sideways in recent months. The stock is currently trading above its 50-day moving average of $14.29 but below its 200-day moving average of $14.64. The stock's relative strength index (RSI) is currently at 50, indicating that the stock is neither overbought nor oversold.
Short Term Outlook
In the short term, the stock price of Day One Biopharmaceuticals is likely to continue to trade sideways. The company's next major catalyst will be the release of data from its Phase II clinical trials of DAY101. Positive data could send the stock price higher, while negative data could send the stock price lower.
Long Term Outlook
In the long term, the outlook for Day One Biopharmaceuticals is positive. The company's lead product candidate, DAY101, has the potential to be a blockbuster drug. If DAY101 is approved by the FDA, it could generate billions of dollars in revenue for the company.
Analyst Recommendations
Analysts are bullish on the stock of Day One Biopharmaceuticals. Out of 11 analysts, 2 recommend a strong buy, 8 recommend a buy, and 1 recommends a hold. The average analyst target price is $37, which represents a potential upside of 126% from the current stock price.
