Buy Rating for Oric Pharmaceuticals Driven by Promising ORIC-944 Study Results and Undervaluation

J.P. Morgan analyst Anupam Rama has maintained their bullish stance on ORIC stock, giving a Buy rating today.

Anupam Rama has given his Buy rating due to a combination of factors that highlight the potential of Oric Pharmaceuticals. The recent data from the phase 1b dose-escalation study of ORIC-944 in combination with AR inhibitors in metastatic castration-resistant prostate cancer showed promising results. The combination demonstrated superior PSA response rates compared to existing benchmarks, indicating a strong efficacy profile. Additionally, the safety data was encouraging, with most adverse events being mild, which contrasts favorably with other treatments.
Anupam Rama also sees significant undervaluation in ORIC shares, with potential for substantial appreciation driven by ORIC-944. The company’s recent $125 million financing extends its cash runway, providing financial stability and supporting long-term development. The Overweight rating and inclusion on the Analyst Focus List are based on the positive outlook for ORIC-944 and ORIC-114, both of which have shown promising early data. The price target of $20 by December 2025 reflects a positive valuation outlook, supported by a detailed discounted cash flow analysis.

Rama covers the Healthcare sector, focusing on stocks such as Sarepta Therapeutics, BridgeBio Pharma, and Neurocrine. According to TipRanks, Rama has an average return of -8.4% and a 37.10% success rate on recommended stocks.

In another report released today, Oppenheimer also reiterated a Buy rating on the stock with a $12.00 price target.