Barclays analyst Etzer Darout downgraded Terns Pharmaceuticals (NASDAQ: TERN) from Overweight to Equalweight with a price target of $53.00 (from $56.00).

The analyst comments: "We are updating our model following MRK (covered by Emily Field) and TERN's announcement of a deal agreement whereby MRK has agreed to acquire TERN at $53 per share, or $6.7B. We're downgrading TERN to Equal Weight and see low risk of additional bidders and no obvious clinical update that could disrupt deal close timelines (deal close expected in 2Q26 per the announcement guidance). MRK was a surprise bidder to us as we would have expected a more established heme-onc player but our historical premium analysis of early and mid-clinical stage oncology asset suggests relatively fair value, consistent with our prior price target."

For an analyst ratings summary and ratings history on Terns Pharmaceuticals click here. For more ratings news on Terns Pharmaceuticals click here.

Shares of Terns Pharmaceuticals closed at $52.92 yesterday.