Stock Price & Analysis

Analysis and Insights

Technical Analysis:

SpringWorks Therapeutics (SWTX) has shown volatility recently, with the stock closing at $49.04 on March 18, 2025. The stock has experienced a slight decline in both pre-market and regular market sessions, with a volume of 2.29 million shares traded, slightly above its average daily volume.

Recent News and Events:

1. Takeover Rumors: SWTX stock saw a surge after withdrawing from an investor conference amid rumors of a potential takeover by Merck KGaA. However, the stock dipped when Merck did not address the acquisition during their earnings call, creating market uncertainty.

2. Options Activity: Significant options trading has been observed, with a high volume of $70 strike call options expiring on March 21, 2025. This suggests investor optimism about a potential price increase.

3. Earnings and Pipeline: SpringWorks reported strong revenue growth for OGSIVEO, with $49.3 million in Q3 2024, driven by robust demand. The company is also preparing for the launch of mirdametinib, with a PDUFA date set for February 28, 2025.

Analyst Sentiment:

Analysts have maintained a "Strong Buy" rating on SWTX, with a price target of $74. Recent updates highlight the potential upside driven by the FDA approval of Gomekli and the company's strong cash position.

Valuation and Financials:

SpringWorks Therapeutics is trading at a premium compared to its peers, reflecting its growth potential. The company has a strong balance sheet with $498 million in cash, expected to fund operations through profitability, anticipated in the first half of 2026.

Conclusion:

Given the strong analyst sentiment, upcoming catalysts, and positive revenue growth, SWTX presents a compelling buy opportunity. However, investors should remain cautious about market volatility and regulatory risks.

The price prediction for SWTX stock in 2025 is $70, driven by potential acquisition rumors with Merck KGaA and significant options activity.

The S1 support level for SWTX Stock is $48.09 ,The R1 resistant level for SWTX Stock is $51.9.

As of the end of day on 2025-03-24, the price of SWTX Stock was $48.87.

The target price for SWTX Stock according to analyst rating is 71.71, with the highest price target at 87.00 and the lowest at 63.00. Analysts have a Strong Buy rating on SWTX Stock overall.

The market cap of SWTX is $3.6B.

Analysis and Insights

Valuation Metrics:

SpringWorks Therapeutics (SWTX) currently trades at $48.9 with a price-to-sales (P/S) ratio of 10.5, indicating a premium valuation relative to its revenue. The negative EV/EBITDA and lack of P/E ratio suggest the market is pricing in future growth expectations.

Analyst Sentiment:

Analysts have a 'Strong Buy' to 'Buy' consensus, with price targets ranging from $60 to $81, reflecting optimism driven by recent FDA approvals and pipeline potential.

Recent Developments:

The FDA approval of Gomekli and its wholesale acquisition cost suggest strong revenue potential, with estimates indicating significant contributions to future growth.

Conclusion:

While SWTX shows promise with positive analyst sentiment and recent approvals, its high P/S ratio and negative earnings indicate overvaluation. Investors should weigh the company's growth prospects against current valuations carefully.

SpringWorks Therapeutics, Inc. is a commercial-stage biopharmaceutical company focused on severe rare diseases and cancer. OGSIVEO (nirogacestat) is the Company's Food and Drug Administration (FDA)-approved therapy. OGSIVEO (nirogacestat) is approved in the United States for the treatment of adult patients with progressing desmoid tumors who require systemic treatment. The Company also has a diversified targeted therapy pipeline spanning solid tumors and hematological cancers, with programs ranging from preclinical development through advanced clinical trials. Its ongoing developments include Nirogacestat for treatment of ovarian granulosa cell tumors, Nirogacestat in combination with B-cell maturation antigen (BCMA)-targeted agents, Mirdametinib Phase 2b ReNeu trial in NF1-PN and Brimarafenib (BGB-3245). The Company's early-stage pipeline includes SW-682, an investigational oral, small molecule TEA Domain (TEAD), inhibitor that is evaluated in Hippo-mutant solid tumors.

The price prediction for SWTX stock in 2030 is expected to reach $85 per share, driven by potential acquisition activity and strong pipeline growth. Analysts have set a $74 to $81 target, with bullish sentiment due to FDA approvals and takeover rumors. The stock could surge to $100 if acquired or grow steadily to $70 with continued pipeline success.

SWTX has a total of 305 employees.