Analyst Mitchell Kapoor of H.C. Wainwright reiterated a Buy rating on Summit Therapeutics (SMMT – Research Report), retaining the price target of $44.00.
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Mitchell Kapoor’s rating is based on the promising collaboration between Summit Therapeutics and Revolution Medicines, which could significantly enhance the value of Summit’s ivonescimab. This partnership aims to explore the potential of combining ivonescimab with Revolution’s RAS inhibitors to target various cancers, including non-small cell lung cancer, pancreatic ductal adenocarcinoma, and colorectal cancer. The collaboration is mutually non-exclusive, allowing both companies to retain commercial rights to their compounds, which adds strategic flexibility.
Furthermore, Kapoor highlights the growing interest in business development opportunities for Summit, particularly following a previous collaboration with Pfizer. The potential success of the RAS(ON) and PD-1 x VEGF combination therapy could substantially increase investor value. Kapoor’s valuation, using a discounted cash flow model, supports a price target of $44 per share, reflecting confidence in ivonescimab’s clinical prospects and the broader oncology market’s potential. However, he acknowledges risks such as development delays and clinical trial failures, which investors should consider.
Kapoor covers the Healthcare sector, focusing on stocks such as Sarepta Therapeutics, Summit Therapeutics, and Ionis Pharmaceuticals. According to TipRanks, Kapoor has an average return of -19.6% and a 30.50% success rate on recommended stocks.
In another report released yesterday, UBS also initiated coverage with a Buy rating on the stock with a $30.00 price target.