Analyst Charles Zhu from LifeSci Capital maintained a Buy rating on Merus and keeping the price target at $110.00.
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Charles Zhu has given his Buy rating due to a combination of factors that highlight Merus’s potential in the oncology market. The company’s management has consistently communicated their confidence in the upcoming data for petosemtamab, particularly in the context of RAS/RAF-wildtype colorectal cancer (CRC) treatments. This confidence is bolstered by the management’s ability to interpret early data and their understanding of patient baseline characteristics, which could influence treatment outcomes.
Additionally, the management’s emphasis on the safety profile of petosemtamab, especially when combined with poly-chemotherapy, adds to the optimism surrounding its potential efficacy. The challenges in the 3L+ CRC setting, due to the variety of standard-of-care therapies and patient conditions, are acknowledged, yet the management remains focused on leveraging consistent data to support their strategy. The company’s financial position, with a cash runway of approximately 3.3 years, further supports the Buy rating as it provides a stable foundation for ongoing research and development efforts.
Zhu covers the Healthcare sector, focusing on stocks such as Zymeworks, IDEAYA Biosciences, and Kura Oncology. According to TipRanks, Zhu has an average return of -0.7% and a 49.61% success rate on recommended stocks.
In another report released today, Guggenheim also reiterated a Buy rating on the stock with a $109.00 price target.