Sudan Loganathan, an analyst from Stephens, maintained the Hold rating on Elevation Oncology (ELEV – Research Report). The associated price target is $1.00.
Sudan Loganathan has given his Hold rating due to a combination of factors affecting Elevation Oncology. The recent decision to discontinue the development of EO-3021, a Claudin 18.2-targeting antibody-drug conjugate, significantly influenced this rating. The Phase 1 trial data for EO-3021 showed a decrease in objective response rate compared to previous results, leading to its discontinuation. This move reflects a strategic shift in focus towards EO-1022, a HER3-targeting ADC, which is now the company’s primary asset.
Despite the setback with EO-3021, the company is expected to benefit from reduced operational expenses following workforce reductions and the elimination of EO-3021’s clinical development. The competitive landscape also played a role, as other companies have shown more promising results with their Claudin 18.2 ADCs. However, the potential of EO-1022 in treating HER3-expressing solid tumors offers a promising avenue for future growth, justifying the Hold rating as the company transitions its focus.
In another report released on March 21, Piper Sandler also downgraded the stock to a Hold with a $0.70 price target.