Nuvalent (NUVL) is fairly valued following GSK's (GSK) agreed acquisition of the company, with limited likelihood of a competing bid emerging, Wedbush Securities said in a Tuesday note.

The brokerage said most logical strategic acquirers, including Pfizer (PFE), Roche and Bristol Myers Squibb (BMY), already have meaningful exposure to ALK- and ROS1-positive non-small cell lung cancer markets, making it difficult to justify a higher offer while achieving attractive returns.

Wedbush said the deal validates the value of differentiated precision oncology assets with advantages in efficacy, tolerability, resistance mutation coverage and CNS penetration.

The investment firm downgraded Nuvalent to neutral from outperform and lowered its price target to $124 from $125, matching the agreed tender offer price from GSK.

Shares of Nuvalent rose more than 39% in Tuesday afternoon trading.

Price: 123.12, Change: +34.63, Percent Change: +39.13