Promising Developments in Cancer Treatment Drive Buy Rating for Merus with $67 Price Target

Analyst John Newman from Canaccord Genuity maintained a Buy rating on Merus (MRUS – Research Report) and keeping the price target at $67.00.

John Newman has given his Buy rating due to a combination of factors related to Merus’s promising developments in cancer treatment. The upcoming update at ASCO for the Phase 2 study of petosemtamab combined with pembrolizumab in first-line Head and Neck Cancer is expected to show improved 12-month Overall Survival (OS) and Progression-Free Survival (PFS) compared to the standard of care. This improvement is anticipated because of the previously demonstrated higher Overall Response Rate (ORR) of petosemtamab compared to pembrolizumab alone in similar studies.
Additionally, the safety profile of petosemtamab is expected to remain consistent, with a low rate of treatment discontinuation due to adverse events. The potential for accelerated approval based on ORR and durability data from Phase 3 studies further supports the positive outlook. The robust efficacy profile and the possibility of regulatory advancements contribute to a favorable investment perspective, justifying the Buy rating with a price target of $67.

In another report released on May 19, Needham also maintained a Buy rating on the stock with a $75.00 price target.