Promising Clinical Developments and Strong Valuation Support Buy Rating for Verastem

Analyst Jeet Mukherjee of BTIG reiterated a Buy rating on Verastem (VSTM – Research Report), retaining the price target of $20.00.

Jeet Mukherjee’s rating is based on several promising developments in Verastem’s clinical programs. The updated data from the KRASG12D inhibitor program, presented at ASCO, showed an improvement in the unconfirmed response rates for both non-small cell lung cancer (NSCLC) and pancreatic ductal adenocarcinoma (PDAC) compared to previous abstracts. Despite some concerns about the difference between confirmed and unconfirmed response rates, key opinion leaders (KOLs) found the data compelling and the adverse events manageable.
Additionally, the response rate among frontline pancreatic cancer patients in the RAMP 205 trial was impressive, with an overall response rate of 83% and a manageable adverse event profile. This positive outlook is reinforced by the anticipation of the launch of avutometinib and defactinib for low-grade serous ovarian cancer (LGSOC). Mukherjee’s valuation of Verastem, using a discounted cash flow analysis, further supports the Buy rating.

In another report released yesterday, H.C. Wainwright also reiterated a Buy rating on the stock with a $14.00 price target.

Based on the recent corporate insider activity of 56 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 VSTM in relation to earlier this year.