JPMorgan initiated coverage on Relay Therapeutics with an Overweight rating. The bank set a price target of $28.00 for the stock. Analysts based the positive outlook on lead drug candidate zovegalisib, a selective PI3Kα inhibitor.
JPMorgan identifies zovegalisib as a multi-indication growth driver for breast cancer and vascular anomalies. The firm estimates peak worldwide sales of $4 billion in the breast cancer market. Analysts project an additional $4.3 billion in peak sales for vascular anomalies.
JPMorgan suggests the current share price is undervalued based on the breast cancer opportunity alone. Relay Therapeutics is currently advancing the drug through pivotal trials with several data and regulatory milestones anticipated.