Analyst Recommends Buy for Merus Based on Promising Petosemtamab Developments and Revenue Potential

Merus (MRUS) has received a new Buy rating, initiated by Piper Sandler analyst, Joseph Catanzaro.

Joseph Catanzaro’s rating is based on a combination of factors that highlight the potential of Merus’s key drug, petosemtamab. He believes that the drug, especially in combination with pembrolizumab, is significantly de-risked in the treatment of head and neck squamous cell carcinoma (HNSCC). The expected additional Phase II data in 2025 is anticipated to further reduce risks for the ongoing Phase III study, providing confidence in the drug’s efficacy.
Furthermore, Catanzaro points to several positive indicators from previous studies, such as a notable objective response rate and progression-free survival, which outperform pembrolizumab alone. He also sees potential in Merus’s efforts in colorectal cancer (CRC), where initial data suggests petosemtamab could be effective. Altogether, these factors contribute to the expectation of significant revenue generation by 2035, supporting his Buy rating for Merus.

In another report released on February 7, Wells Fargo also initiated coverage with a Buy rating on the stock with a $91.00 price target.

MRUS’s price has also changed moderately for the past six months – from $51.750 to $40.260, which is a -22.20% drop .