Analyst Charles Zhu from LifeSci Capital maintained a Buy rating on Revolution Medicines and keeping the price target at $104.00.
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Charles Zhu has given his Buy rating due to a combination of factors that highlight the potential of Revolution Medicines’ ongoing clinical trials. The RASolute 302 trial for daraxonrasib in second-line pancreatic ductal adenocarcinoma (2L PDAC) is a significant focus, with its potential to change clinical practices in a market with high unmet needs. The trial’s success could have implications not only for 2L PDAC but also for first-line PDAC and the broader (K)RAS landscape, providing a catalyst for the company’s stock.
Moreover, the trial’s ability to replicate Phase 1 efficacy with only modest deterioration is promising, even considering historical trends. The potential for strong, statistically significant progression-free survival (PFS) and positive interim overall survival (OS) trends further supports the Buy rating. Zhu acknowledges the possibility of significant stock movement, with scenarios that could lead to a 60% increase in share value if the trial meets key interim endpoints, thus making Revolution Medicines an attractive investment opportunity.
According to TipRanks, Zhu is a 5-star analyst with an average return of 29.6% and a 65.82% success rate. Zhu covers the Healthcare sector, focusing on stocks such as Kura Oncology, Zymeworks, and IDEAYA Biosciences.