Elevation Oncology (ELEV – Research Report), the Healthcare sector company, was revisited by a Wall Street analyst yesterday. Analyst Biren Amin from Piper Sandler downgraded the rating on the stock to a Hold and gave it a $0.70 price target.
Biren Amin has given his Hold rating due to a combination of factors surrounding Elevation Oncology’s recent strategic decisions. The company announced the discontinuation of its lead asset, EO-3021, which was in Phase 1 development for gastric and GEJ cancers. Despite showing potential with a differentiated safety profile, the efficacy results were not compelling enough to justify further development, leading to a downgrade in the stock rating.
Additionally, Elevation Oncology is pivoting its focus towards EO-1022, a HER3-targeted ADC, which is still in preclinical stages. The company plans to explore other strategic options, such as in-licensing new programs or a strategic merger. With a cash runway expected to last into the second half of 2026, the financial outlook is stable, but the uncertainty surrounding future developments justifies a Hold rating.
Amin covers the Healthcare sector, focusing on stocks such as Apellis Pharmaceuticals, Sarepta Therapeutics, and Ocular Therapeutix. According to TipRanks, Amin has an average return of -2.9% and a 38.31% success rate on recommended stocks.