Why Edgewise Therapeutics Stock Popped This Week

On Thursday, an analyst launched coverage of Edgewise Therapeutics (NASDAQ: EWTX) stock, and the market took notice in a good way. On the back of his bullish view of the company, according to data compiled by S&P Global Market Intelligence, its share price vaulted nearly 14% higher across the week.

An analyst finds his inner bull with the biotech

That professional was Guggenheim's Debjit Chattopadhyay, who initiated his Edgewise Therapeutics coverage with a buy recommendation, and price target of $41 per share. That's well more than double the biotech stock's most recent closing price, just shy of $17.

Where to invest $1,000 right now? Our analyst team just revealed what they believe are the 10 best stocks to buy right now. Continue »

Image source: Getty Images.

According to reports, Chattopadhyay wrote in his inaugural research note on Edgewise that with its attractive enterprise value (EV), combined with quite a promising pipeline, the company's stock has significant upside potential.

That EV currently stands at over $1 billion, the analyst pointed out, and it has not one but two promising development programs. The first is EDG-7500, a treatment targeting obstructive and nonobstructive hypertrophic cardiomyopathy, a heart disorder, and the second is Duchenne muscular dystrophy drug sevasemten. Clinical trial results should come in for both within the next year.

A word of caution

Given all that, Edgewise is in a better position than many other biotechs to succeed. We should always bear in mind with such companies, however, that much depends on their pipelines. If experimental drugs do well in the lab and ultimately win regulatory approval, the developer could be quite the winner on the stock market. However, the opposite is usually true if a pipeline drug flops.

Should you invest $1,000 in Edgewise Therapeutics right now?

Before you buy stock in Edgewise Therapeutics, consider this:

The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Edgewise Therapeutics wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.

Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $611,271!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $684,068!*

Now, it’s worth noting Stock Advisor’s total average return is 889% — a market-crushing outperformance compared to 162% for the S&P 500. Don’t miss out on the latest top 10 list, available when you join Stock Advisor.

See the 10 stocks »

*Stock Advisor returns as of April 28, 2025

Eric Volkman has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.