TD Cowen analyst Marc Frahm has maintained their bullish stance on RVMD stock, giving a Buy rating on November 21.
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Marc Frahm has given his Buy rating due to a combination of factors that highlight the promising potential of Revolution Medicines. The company’s pivotal trial for second-line pancreatic ductal adenocarcinoma (PDAC) is anticipated to yield positive results by 2026, which could significantly bolster their market position. The expectation is that the progression-free survival and overall survival data will not only secure approval for second-line treatment but also reduce the risks associated with the first-line treatment opportunity, valued at over $5 billion.
Revolution Medicines’ lead candidate, daraxonrasib, is undergoing pivotal trials across various cancer types, including adjuvant, first-line, and second-line PDAC, as well as second-line non-small cell lung cancer (NSCLC). The enthusiasm among clinicians, based on compelling Phase 1 data, suggests a high probability of success for the ongoing trials. With a market capitalization of approximately $15 billion, there is confidence that the RASolute302 trial will meet its primary endpoints, paving the way for significant sales in second-line PDAC and potentially elevating the company’s market cap well into the $20 billion range.
According to TipRanks, Frahm is a 5-star analyst with an average return of 14.2% and a 53.24% success rate. Frahm covers the Healthcare sector, focusing on stocks such as Incyte, Revolution Medicines, and Cullinan Management.
In another report released on November 21, J.P. Morgan also maintained a Buy rating on the stock with a $82.00 price target.