H.C. Wainwright analyst Mitchell Kapoor reiterated a Buy rating on Summit Therapeutics today and set a price target of $50.00.
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Mitchell Kapoor’s rating is based on the promising clinical milestones achieved by Summit Therapeutics’ ivonescimab, particularly in the context of its performance in trials against established competitors like Keytruda. The HARMONi-2 trial in China demonstrated a significant extension in median progression-free survival compared to Keytruda, while the HARMONi-A trial achieved overall survival statistical significance in EGFR-mutant NSCLC. These results highlight ivonescimab’s potential to redefine the PD-1 landscape, despite the stock being undervalued due to market misunderstandings and regional data variability.
Kapoor believes that the current concerns about disclosure sequencing and regional hazard ratio differences are misplaced, presenting a risk-mitigated entry point for investors. The upcoming data from the HARMONi-2 and HARMONi-6 trials are seen as pivotal, potentially leading to a revaluation of the stock. The expectation is that with further follow-up, the overall survival benefits observed in North America and Asia will become more apparent in Europe, aligning the hazard ratios more closely with the favorable North American outcomes. This potential for improved outcomes supports the reiterated Buy rating and a 12-month price target of $50.
Based on the recent corporate insider activity of 7 insiders, corporate insider sentiment is positive on the stock. This means that over the past quarter there has been an increase of insiders buying their shares of SMMT in relation to earlier this year.