Last Updated: 17 Sep 2024
Executive Summary
Terns Pharmaceuticals Inc. (TERN) is a clinical-stage biopharmaceutical company focused on developing treatments for nonalcoholic steatohepatitis (NASH) and other chronic liver diseases. The company has a market capitalization of $756.12 million and is currently trading at $9.41 per share. Analysts have a strong buy rating on the stock, with a target price of $16.7.
Company Overview
Terns Pharmaceuticals was founded in 2014 and is headquartered in Foster City, California. The company's lead product candidate, TERN-101, is a small-molecule inhibitor of the protein kinase CK2. CK2 is a key regulator of cellular growth and proliferation, and its inhibition has been shown to have therapeutic potential in a variety of diseases, including NASH.
TERN-101 is currently in Phase 2 clinical trials for the treatment of NASH. The company expects to report top-line data from the trial in the second half of 2024. Terns Pharmaceuticals also has a pipeline of other preclinical programs targeting NASH and other chronic liver diseases.
Fundamental Analysis
Terns Pharmaceuticals is a pre-revenue company, so it does not have any financial metrics to analyze. However, the company's cash position is strong, with $226.9 million in cash and equivalents as of June 30, 2024. This should be sufficient to fund the company's operations through the completion of the Phase 2 clinical trial for TERN-101.
Technical Analysis
The technical analysis of Terns Pharmaceuticals' stock price shows that the stock is currently in a bullish trend. The stock has been trading above its 50-day and 200-day moving averages, and it has recently broken out of a resistance level at $9.00. The stock's relative strength index (RSI) is also in bullish territory, indicating that the stock is overbought.
Short Term Outlook
The short-term outlook for Terns Pharmaceuticals is positive. The stock is in a bullish trend, and it is trading above its key moving averages. The company is also expected to report top-line data from the Phase 2 clinical trial for TERN-101 in the second half of 2024. This data could be a catalyst for further gains in the stock price.
Long Term Outlook
The long-term outlook for Terns Pharmaceuticals is also positive. The company is developing a promising treatment for NASH, which is a major unmet medical need. If TERN-101 is successful in clinical trials, it could be a major commercial success for Terns Pharmaceuticals.
Analyst Recommendations
Analysts have a strong buy rating on Terns Pharmaceuticals, with a target price of $16.7. This target price represents a potential upside of 77% from the current stock price. Analysts believe that Terns Pharmaceuticals has the potential to be a major player in the NASH market, and they recommend buying the stock ahead of the Phase 2 clinical trial data readout.
