Merus’s Strategic Advancements and Promising Trials Justify Buy Rating with $92 Price Target

Merus (MRUS – Research Report), the Healthcare sector company, was revisited by a Wall Street analyst today. Analyst Tazeen Ahmad from Bank of America Securities maintained a Buy rating on the stock and has a $92.00 price target.

Tazeen Ahmad has given his Buy rating due to a combination of factors related to Merus’s strategic development and promising clinical trials. The company’s ongoing Phase 2 trial for petosemtamab in metastatic colorectal cancer (mCRC) is designed to optimize patient outcomes by utilizing insights from previous studies. This trial includes distinct cohorts aimed at understanding the therapeutic window of petosemtamab, particularly in RAS/RAF wild-type patients who are EGFR-treatment naive. The trial’s stepwise approach and cohort refinement are expected to better identify responsive patients, which is crucial given the sizable market potential of mCRC.
Additionally, the dual targeting mechanism of petosemtamab, focusing on EGFR and LGR5, positions it uniquely to address the biology of colorectal cancer across various lines of therapy. This mechanism could potentially enhance the depletion of cancer stem cell-like cells, which are implicated in resistance and recurrence. The company is also advancing its Phase 3 trial for head and neck squamous cell carcinoma (HNSCC), with promising data suggesting petosemtamab’s potential as a foundational first-line therapy. Overall, these clinical advancements and strategic positioning underpin the Buy rating, with a price objective of $92, reflecting the potential upside in Merus’s valuation.

In another report released yesterday, LifeSci Capital also maintained a Buy rating on the stock with a $110.00 price target.