Erasca (ERAS) has received a new Buy rating, initiated by Stifel Nicolaus analyst, Damien Choplain.
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Damien Choplain has given his Buy rating due to a combination of factors including the perceived valuation gap between Erasca’s ERAS-0015 and Revolution Medicines’ daraxonrasib. Despite Revolution Medicines having a first-to-market advantage with its pan-RAS inhibitor, the extensive total addressable market (TAM) for these treatments suggests ample opportunity for Erasca as a significant second mover. Choplain’s price target of $4 for Erasca reflects a valuation at approximately 10% of Revolution Medicines’ current enterprise value, with expectations for ERAS-0015 to launch in the second half of 2030 and generate $1.56 billion in revenue by 2035.
Additionally, Choplain views ERAS-0015 as the only near-term follow-on pan-RAS to daraxonrasib, with initial data expected in 2026. The large TAM, which encompasses 20-30% of all solid tumors, offers a promising landscape for Erasca’s success. Furthermore, the potential differentiation in efficacy and safety of ERAS-0015, particularly in skin and gastrointestinal tolerability, could provide significant upside. Erasca’s concurrent development of a pan-KRAS molecule, ERAS-4001, serves as a strategic hedge, enhancing its competitive positioning across the RAS-driven tumor landscape. A healthy balance sheet, with cash runway extending into the second half of 2028, supports Erasca’s progress beyond key Phase 1 proof of concept data sets anticipated in 2026.