Arcus Biosciences: Promising Pipeline and Financial Health Justify Buy Rating

Arcus Biosciences (RCUS – Research Report), the Healthcare sector company, was revisited by a Wall Street analyst yesterday. Analyst Eva Fortea Verdejo from Wells Fargo maintained a Buy rating on the stock and has a $26.00 price target.

Eva Fortea Verdejo has given her Buy rating due to a combination of factors related to Arcus Biosciences’ promising pipeline and financial health. The upcoming data presentations, particularly the Casdatifan+cabozantinib results expected at ASCO, are anticipated to provide significant upside potential. This combination therapy is seen as having a favorable risk/reward profile, with expectations for efficacy comparable to or better than existing treatments, which could enhance its market position.
Additionally, the company’s strategic focus on optimizing spending by deprioritizing certain projects while advancing others, such as the ongoing studies of Domvanalimab and Zimberelimab, reflects prudent management. The company’s strong cash position, with approximately $1 billion at the end of Q1 2025, supports its ability to fund pivotal readouts and new pipeline candidates in the I&I space. These factors, combined with the potential for decreased expenses in the coming years, underpin the Buy rating.

In another report released today, Barclays also maintained a Buy rating on the stock with a $14.00 price target.

RCUS’s price has also changed dramatically for the past six months – from $15.730 to $8.120, which is a -48.38% drop .