In a report released today, Ami Fadia from Needham maintained a Buy rating on Merus, with a price target of $96.00.
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Ami Fadia’s rating is based on several key factors influencing Merus’s stock outlook. Despite the company’s recent earnings being uneventful, with a reported EPS of -$2.23 that was significantly below consensus expectations, the focus remains on the upcoming data for petosemtamab in colorectal cancer (CRC). The anticipation of initial data updates in the second half of 2025 for petosemtamab, both as a combination therapy and a monotherapy, plays a crucial role in maintaining a positive outlook.
Ami Fadia also considers the ongoing patient enrollment for these trials, which could impact the data’s comprehensiveness. The management’s emphasis on evaluating the overall data, such as tumor burden reduction alongside objective response rates, suggests a strategic approach to assessing the drug’s potential. These elements combined contribute to the Buy rating, reflecting optimism about Merus’s future developments and potential market impact.
Fadia covers the Healthcare sector, focusing on stocks such as Jazz Pharmaceuticals, ACADIA Pharmaceuticals, and Alkermes. According to TipRanks, Fadia has an average return of 5.9% and a 47.30% success rate on recommended stocks.