William Blair analyst Matt Phipps has reiterated their bullish stance on MRUS stock, giving a Buy rating on April 24.
Matt Phipps has given his Buy rating due to a combination of factors that highlight the potential of Merus’s petosemtamab in the treatment of head and neck squamous cell carcinoma (HNSCC). The recent results from the KEYNOTE-689 study, presented by Merck, showed positive outcomes for Keytruda as a perioperative treatment, generating enthusiasm for its potential impact on clinical practice. However, Phipps believes that the implications for the metastatic HNSCC market, where Merus is focusing its efforts, are limited.
Despite the success of Keytruda in the perioperative setting, Phipps maintains that the impact on the metastatic HNSCC population is minimal, estimated at less than 10%. This assessment supports the view that Merus’s petosemtamab could still capture significant market share in this area. With an estimated $3.8 billion in peak sales by 2041 for petosemtamab across both first-line and previously treated recurrent/metastatic HNSCC, Phipps reiterates a positive outlook for Merus, justifying the Buy rating.
Phipps covers the Healthcare sector, focusing on stocks such as Bristol-Myers Squibb, Incyte, and Kezar Life Sciences. According to TipRanks, Phipps has an average return of -11.4% and a 33.33% success rate on recommended stocks.
In another report released on April 24, Needham also maintained a Buy rating on the stock with a $83.00 price target.