Day One Biopharma stock gains on BofA upgrade (NASDAQ:DAWN)

Day One Biopharmaceuticals (NASDAQ:DAWN) traded higher on Thursday after Bank of America upgraded the cancer drugmaker to Buy from Underperform, citing the commercial opportunity for its lead product, Ojemda.

The company’s shares fell despite FDA approval of Ojemda for a type of pediatric brain cancer called low-grade glioma in late April.

However, “Day One is in a very different place today versus earlier in the year, having stepped through multiple points of derisking and shoring up its cash position,” BofA analyst Alec Stranahan wrote a day after DAWN released its Q2 2024 financials.

The analyst argues that Ojemda has exceeded his estimates, generating $8.2M in sales with more than 150 patients on the therapy, positioning Day One (DAWN) “on a path to beat full-year numbers.” Stranahan raised his per-share target on DAWN to $24 from $11.