Analyst Robert Burns from H.C. Wainwright reiterated a Buy rating on Bicara Therapeutics Inc. and keeping the price target at $40.00.
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Robert Burns has given his Buy rating due to a combination of factors including promising clinical data and a positive outlook for Bicara Therapeutics Inc. The recent presentation at the ESMO Asia Congress highlighted preliminary results from a Phase 1b trial, showing a notable objective response rate when combining ficerafusp alfa with Keytruda in patients with HPV-related cancers. This combination therapy demonstrated a higher response rate compared to Keytruda alone or with chemotherapy, suggesting a potential for accelerated approval in future trials.
Furthermore, Burns’s valuation approach, which incorporates a discounted cash flow model with a 10% discount rate and a 45% probability of approval, supports a market value of $2.20 billion. This translates to a 12-month price target of $40 per share. Despite the inherent risks such as potential negative clinical outcomes and regulatory challenges, the strong clinical data and strategic development plans underpin the Buy recommendation.
According to TipRanks, Burns is a 4-star analyst with an average return of 7.7% and a 44.47% success rate. Burns covers the Healthcare sector, focusing on stocks such as ADC Therapeutics, Bicara Therapeutics Inc., and Exelixis.
In another report released yesterday, Morgan Stanley also maintained a Buy rating on the stock with a $36.00 price target.