In a report released today, Charles Zhu from LifeSci Capital maintained a Buy rating on Merus (MRUS – Research Report), with a price target of $110.00.
Charles Zhu has given his Buy rating due to a combination of factors that highlight the potential of Merus’s ongoing clinical trials. The Phase 3 LiGeR-HN1 trial for petosemtamab, targeting a multi-billion market, is seen as promising, especially with the primary Overall Response Rate (ORR) analysis expected to be statistically significant. Zhu notes that the interim Overall Survival (OS) analysis presents a high bar, but the ORR analysis appears more achievable, which could positively impact the stock.
Furthermore, Zhu points out that the company’s enrollment analysis suggests a favorable outcome, with sufficient patient follow-up likely to trigger the primary ORR analysis. The statistical analysis indicates a strong likelihood of achieving significant results, which aligns with management’s commercial viability expectations. Additionally, Merus’s financial position, with a cash runway of approximately three years, supports the company’s ability to continue its development efforts without immediate financial strain.
In another report released on March 20, Citi also maintained a Buy rating on the stock with a $97.00 price target.