H.C. Wainwright analyst Robert Burns has reiterated their bullish stance on PMVP stock, giving a Buy rating on March 7.
Robert Burns’s rating is based on several key considerations. Firstly, PMV Pharmaceuticals has demonstrated financial stability, ending 2024 with a substantial cash reserve of $183.3 million, which is expected to support operations through the end of 2026. This financial position, despite a reported net loss for 2024, provides a solid foundation for the company’s ongoing research and development efforts.
Additionally, the potential of PMV’s drug candidate, rezatapopt, is a significant factor in the Buy rating. Although the probability of approval for rezatapopt as a monotherapy in a tumor-agnostic setting is currently viewed as low, meaningful response rates have been observed in specific cancer types such as ovarian, breast, small-cell lung, and endometrial cancers. The anticipation of an interim analysis from Phase 2 trials by mid-2025 further supports the positive outlook. The valuation approach, using a discounted cash flow model, projects a market value of $253 million, with risks acknowledged but deemed manageable. These elements collectively contribute to the Buy recommendation.
Burns covers the Healthcare sector, focusing on stocks such as Exelixis, Oric Pharmaceuticals, and Nuvation Bio. According to TipRanks, Burns has an average return of -20.4% and a 25.65% success rate on recommended stocks.