Analyst Eva Fortea Verdejo of Wells Fargo maintained a Buy rating on Merus (MRUS – Research Report), retaining the price target of $91.00.
Eva Fortea Verdejo’s rating is based on several promising developments within Merus’s pipeline, particularly the progress of petosemtamab in treating head and neck squamous cell carcinoma (HNSCC). The company has made significant strides in its Phase 3 trials, with expectations to complete substantial enrollment by the end of 2025, which is a positive indicator for investors. The recent Breakthrough Therapy Designation (BTD) for petosemtamab in first-line HNSCC further underscores its potential, suggesting that the drug could achieve a best-in-class profile with durable efficacy data.
Additionally, Verdejo highlights the potential upside in Merus’s colorectal cancer (mCRC) program. While confidence in petosemtamab’s efficacy in mCRC is currently low, early positive responses could significantly boost the stock’s value. The company’s strong cash position, projected to sustain operations until 2028, provides a solid financial foundation to support these ongoing and future trials. Overall, Verdejo sees limited downside risk and substantial upside potential, particularly with the anticipated data readouts in the second half of 2025.
According to TipRanks, Fortea Verdejo is an analyst with an average return of -18.9% and a 15.38% success rate. Fortea Verdejo covers the Healthcare sector, focusing on stocks such as Xencor, Merus, and Kiniksa Pharmaceuticals.