Should I Buy VSTM? VSTM 2026 Analysis

Should You Buy Verastem Inc (VSTM) Today? Analysis, Price Targets, and 2026 Outlook.

Conclusion

Hold

Latest Price

6.410

1 Day change

2.89%

52 Week Range

11.240

Analysis Updated At

2026/01/26

Verastem Inc (VSTM) is not a strong buy for a beginner, long-term investor at this moment. While hedge funds are showing significant interest and analysts maintain a positive outlook with high price targets, the technical indicators are bearish, and the stock's short-term trend suggests potential downside. Additionally, the company's financials, while showing some improvements, still reflect significant losses. Given the lack of strong proprietary trading signals and no recent news catalysts, it is better to hold off on buying this stock currently.

Technical Analysis

The technical indicators for VSTM are bearish. The MACD is below 0 and negatively contracting, the RSI is neutral at 32.688, and the moving averages indicate a bearish trend (SMA_200 > SMA_20 > SMA_5). Key support is at 6.382, and the stock is trading near this level in pre-market at 6.42. Resistance levels are at 7.941 and 8.422.

Options Data

Bullish

Open Interest Put-Call Ratio

Bullish

Option Volume Put-Call Ratio

Technical Summary

Sell

Buy

Positive Catalysts

Hedge funds are significantly increasing their buying activity, up 1120.13% over the last quarter.
Analysts maintain a Buy rating with price targets of $14-$15, suggesting significant upside potential.
The company's lead asset generated impressive first full-quarter sales, exceeding expectations.

Neutral/Negative Catalysts

The technical indicators are bearish, and the stock's short-term trend indicates potential downside (-9.4% in the next week).
The company recently discontinued a development program, which may have impacted investor sentiment.
Financials show a net loss of -$98.5M in Q3 2025, despite some YoY improvements.

Financial Performance

In Q3 2025, revenue remained flat at $11.24M YoY. Net income improved significantly YoY but remains negative at -$98.5M. EPS increased to -1.35, up 125% YoY. Gross margin dropped to 82.57%, down -17.43% YoY.

Growth

Profitability

Efficiency

Analyst Ratings and Price Target Trends

Analysts maintain a positive outlook with Buy and Outperform ratings. Guggenheim has a $14 price target, and Mizuho has a $15 price target. Analysts believe the recent weakness in the stock is overdone and recommend being opportunistic.

6 Analyst Rating

Wall Street analysts forecast VSTM stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for VSTM is 15.6 USD with a low forecast of 14 USD and a high forecast of 20 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.

6 Buy

0 Hold

0 Sell

Strong Buy

Current: 6.230

Low

Averages

15.6

High

Current: 6.230

Low

Averages

15.6

High

Guggenheim

Michael Schmidt

Buy

maintain

$14

AI Analysis

2025-12-30

Reason

Guggenheim

Michael Schmidt

Price Target

$14

AI Analysis

2025-12-30

maintain

Buy

Reason

After Verastem announced it will discontinue development of avutometinib/defactinib plus Amgen's (AMGN) sotorasib for KRAS G12C mutant NSCLC and end the RAMP 203 study, Guggenheim analyst Michael Schmidt tells investors that the firm is "not surprised by the announcement" given the RAMP 203 study and the KRAS G12Ci combo opportunity has not been a major investor focus or meaningful component of the stock's valuation. The firm maintains a Buy rating and $14 price target on Verastem shares.

Mizuho

Outperform

maintain

$15

2025-11-04

Reason

Mizuho

Price Target

$15

2025-11-04

maintain

Outperform

Reason

Mizuho reiterated an Outperform rating and $15 price target on Verastem, noting the shares are falling intraday following the company's Q3 results. At first blush, the firm was "thoroughly impressed" by the first full quarterly sales of lead asset Avmapki Fakzynja/AF Co-Pack of $11.2M, which came in handily ahead of the firm's and Bloomberg's consensus estimates. Mizuho said that it believes the stock weakness is related to two updates, namely a need to add 29 additional patients to the confirmatory Phase 3 RAMP 301 study for AF and uncertainty on the timing of AF's potential inclusion in updated National Comprehensive Cancer Network treatment guidelines. The firm added that the current weakness appears overdone and recommends being "opportunistic."

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VSTM Should I Buy

VSTM Should I Buy

Should You Buy Verastem Inc (VSTM) 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

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