BMO Capital analyst Evan Seigerman downgraded the rating on Merus to a Hold today, setting a price target of $97.00.
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Evan Seigerman has given his Hold rating due to a combination of factors surrounding the recent buyout proposal and upcoming clinical data. The acquisition of Merus by Genmab for $8.0 billion is seen as a positive move for shareholders, yet the pending Phase 2 data for petosemtamab in colorectal cancer (CRC) could influence perceptions of the deal.
Seigerman anticipates that the initial CRC data might not meet high investor expectations, with projected response rates slightly below what shareholders might hope for. Despite this, the expected transaction price of $97 per share reflects a reasonable valuation, assuming the deal closes as planned in the first quarter of 2026. Consequently, the Hold rating reflects a balanced view of potential outcomes from the data and the acquisition process.
Seigerman covers the Healthcare sector, focusing on stocks such as Vertex Pharmaceuticals, Bristol-Myers Squibb, and Eli Lilly & Co. According to TipRanks, Seigerman has an average return of 3.6% and a 45.90% success rate on recommended stocks.
In another report released today, UBS also downgraded the stock to a Hold with a $97.00 price target.