Silvan Tuerkcan, an analyst from JMP Securities, has initiated a new Hold rating on Elevation Oncology (ELEV).
Elevate Your Investing Strategy:
- Take advantage of TipRanks Premium at 50% off! Unlock powerful investing tools, advanced data, and expert analyst insights to help you invest with confidence.
- Make smarter investment decisions with TipRanks' Smart Investor Picks, delivered to your inbox every week.
Silvan Tuerkcan’s rating is based on several key considerations surrounding Elevation Oncology’s current position and future prospects. The decision to discontinue the development of their lead asset, EO-3021, due to unsatisfactory clinical results has significantly impacted the company’s outlook. This asset, which targeted CLDN18.2, did not meet the internal benchmarks for success, leading to its termination.
Furthermore, while Elevation plans to advance another asset, EO-1022, the timeline for clinical data is extended, and there is uncertainty regarding potential strategic transactions. The company’s current valuation, trading at approximately 25% of its projected cash minus debt by the end of 2024, is seen as a fair discount given the uncertainties faced. These factors collectively contribute to the Hold rating, reflecting a cautious approach as the company navigates these challenges.
In another report released today, Wedbush also downgraded the stock to a Hold with a $1.60 price target.