Should I Buy TERN? TERN 2026 Analysis

Should You Buy Terns Pharmaceuticals Inc (TERN) Today? Analysis, Price Targets, and 2026 Outlook.

Conclusion

Hold

Latest Price

52.720

1 Day change

-0.30%

52 Week Range

53.190

Analysis Updated At

2026/03/27

Should I buy Analysis is updated weekly. For real time "Should I Buy" analysis, please sign up to get free answers.

Terns Pharmaceuticals Inc (TERN) is not a strong buy at the moment for a beginner, long-term investor. The stock is currently trading near its acquisition price of $53 per share by Merck, leaving limited upside potential. Additionally, the technical indicators suggest the stock is overbought, and there are no strong proprietary trading signals to support an immediate buy. While the company's drug pipeline and acquisition news are positive, the financial performance and lack of significant trading trends do not justify a strong buy recommendation.

Technical Analysis

The stock exhibits bullish moving averages (SMA_5 > SMA_20 > SMA_200) and a positive MACD histogram of 0.555, indicating an upward trend. However, the RSI of 86.533 suggests the stock is overbought. The pre-market price of $52.8688 is slightly below the acquisition price of $53, indicating limited room for growth in the short term.

Options Data

Bullish

Open Interest Put-Call Ratio

Bearish

Option Volume Put-Call Ratio

Technical Summary

Sell

Buy

Positive Catalysts

Merck's acquisition of Terns Pharmaceuticals at a 42% premium strengthens its blood cancer pipeline, particularly with TERN-
Analysts have a positive outlook on TERN-701, with a $58 price target and a $4.8B opportunity in the frontline CML setting.

Neutral/Negative Catalysts

The stock is trading near its acquisition price, limiting upside potential.
Investigations into potential shareholder rights violations related to the acquisition may create uncertainty.

Financial Performance

In Q3 2025, revenue remained at $0, with no growth YoY. Net income improved by 12.26% YoY but remained negative at -$24.635M. EPS dropped by 3.57% YoY to -0.27, and gross margin remained at 0%. Overall, the financials are weak with no significant growth.

Growth

Profitability

Efficiency

Analyst Ratings and Price Target Trends

Leerink initiated coverage with an Outperform rating and a $58 price target, citing TERN-701's potential as a best-in-class drug for chronic myeloid leukemia. The primary driver of value is the frontline CML setting, with additional revenue potential in second-line-and-beyond treatments.

11 Analyst Rating

Wall Street analysts forecast TERN stock price to rise

11 Buy

0 Hold

0 Sell

Strong Buy

Current: 52.720

Low

Averages

54.22

High

Current: 52.720

Low

Averages

54.22

High

Leerink

Outperform

initiated

$58

AI Analysis

2026-02-09

Reason

Leerink

Price Target

$58

AI Analysis

2026-02-09

initiated

Outperform

Reason

Leerink initiated coverage of Terns Pharmaceuticals with an Outperform rating and $58 price target. Terns is a clinical-stage biotechnology company developing TERN-701, a next-generation allosteric BCR::ABL1 inhibitor for chronic myeloid leukemia. Early phase 1 TERN-701 CARDINAL data suggest a best-in-class profile, with materially higher molecular response rates and a clean safety profile that affords a wider therapeutic window enabling deeper and more durable target suppression, the firm notes. The frontline CML setting is the primary driver of value for TERN-701, which Leerink sees as a $4.8B opportunity, $32/share in its model. At Terns's current $4B market valuation, conviction in TERN-701's ability to meaningfully penetrate the frontline setting is paramount to the long thesis. The firm forecasts an additional $1.4B of second-line-and-beyond peak revenues or $18/share in its model.

Citizens

Outperform

maintain

$35 -> $57

2025-12-11

Reason

Citizens

Price Target

$35 -> $57

2025-12-11

maintain

Outperform

Reason

Citizens raised the firm's price target on Terns Pharmaceuticals to $57 from $35 and keeps an Outperform rating on the shares. Terns' interim Phase 1 CARDINAL ASH update highlighted the best-in-class profile of TERN-701, the analyst tells investors in a research note. Key additional data points were the high deep molecular response rate, setting it up well in 1L, and the strong activity post asciminib and ponatinib, which is very positive in 2L, Citizens says.

Unlock Full Analyst Thesis， Get the complete breakdown of rating reason for TERN

Unlock Now

TERN Should I Buy

TERN Should I Buy

Should You Buy Terns Pharmaceuticals Inc (TERN) Today? Analysis, Price Targets, and 2026 Outlook.

Technical Analysis

Options Data

Technical Summary

Positive Catalysts

Neutral/Negative Catalysts

Financial Performance

Growth

Profitability

Efficiency

Analyst Ratings and Price Target Trends

People Also Watch