Merus’s Peto+Pembro Shows Promising Potential in HNSCC with High Survival Rates and Increased Price Target

Merus (MRUS – Research Report), the Healthcare sector company, was revisited by a Wall Street analyst today. Analyst Ami Fadia from Needham maintained a Buy rating on the stock and has a $88.00 price target.

Ami Fadia has given his Buy rating due to a combination of factors that highlight the promising potential of Merus’s Peto+Pembro treatment in the first-line setting for head and neck squamous cell carcinoma (HNSCC). The updated data presented at ASCO 2025 showcased a one-year overall survival rate of 79%, which is notably higher compared to the standard of care pembrolizumab monotherapy’s 44% and ficerafusp’s 61%. This suggests a significant improvement in median overall survival, positioning Peto+Pembro as a strong candidate for becoming the new standard of care.
Additionally, the objective response rate in the HPV-positive cohort increased to 50%, surpassing pembrolizumab’s 25% in the second-line setting and competing well against similar drugs under development. The competitive profile in the HPV-negative cohort, with a one-year overall survival rate of approximately 79%, further strengthens the case for Peto+Pembro. These compelling data points reduce the risk associated with Phase 3 trials, leading to an increased probability of success and a raised price target of $88.

Based on the recent corporate insider activity of 17 insiders, corporate insider sentiment is negative on the stock. This means that over the past quarter there has been an increase of insiders selling their shares of MRUS in relation to earlier this year.