Scotiabank Rates Cogent Biosciences with Outperform

Market Momentum: Scotiabank initiates coverage on Cogent Biosciences with a Sector Outperform recommendation, suggesting a promising upside potential of 138.63% over the next year.

Date: 08-03-2025

AI Rating: 6

Analysis of the Coverage Initiation by Scotiabank

Scotiabank's coverage initiation of Cogent Biosciences with a 'Sector Outperform' recommendation indicates confidence in the company's future performance. The provided average price target of $16.73 per share, which corresponds to a potential upside of 138.63% from the last closing price of $7.01, is a particularly strong bullish signal for investors.

Earnings Per Share (EPS)

The estimated non-GAAP EPS for Cogent Biosciences is -2.18. While this figure is negative, it is common for biotechnology companies in early stages of development, as they often invest heavily in research and development.

Revenue Growth

The projected annual revenue for Cogent Biosciences is $15 million, which represents an infinite percentage increase, suggesting significant growth expectations potentially tied to new therapies the company is developing.

Sentiment from Funds and Institutions

The report reveals an increase of 18 institutional owners (5.49%) in the last quarter, indicative of growing confidence among institutional investors. However, there's a bearish sentiment highlighted by the put/call ratio of 1.48, which investors should take note of as it reflects potential hedging against stock price declines.

Several institutions, such as Kynam Capital Management, have reduced their positions significantly, indicating that investor sentiment is mixed at best, despite the strong upside forecast provided by Scotiabank.

Stocks: COGT