Day One rallies after double upgrade at BofA on favorable setup

BofA analyst Alec Stranahan double upgraded Day One Biopharmaceuticals to Buy from Underperform with a price target of $24, up from $11. The shares in premarket trading are up 5% to $15.05. The firm sees a favorable share setup ahead of the pivotal FIREFLY-2 readout. While the commercial and regulatory picture for Ojemda is still playing out, positive physician feedback, good treatment duration, manageable safety, and an easier path to show tumor responses under the Response Assessment in Pediatric Neuro-Oncology creates a favorable setup heading into the next updates, the analyst tells investors in a research note. BofA believes both Day One’s commercial opportunity for Ojemda and its growing early pipeline are undervalued at current share levels.