Verastem’s Promising Clinical Advances and Strategic Developments Justify Buy Rating

H.C. Wainwright analyst Sean Lee CFA has reiterated their bullish stance on VSTM stock, giving a Buy rating on May 23.

Sean Lee CFA has given his Buy rating due to a combination of factors including promising clinical trial results and strategic developments by Verastem. The company presented encouraging data from their Phase 1 RAMP 205 study, which showed a significant response rate in patients with metastatic pancreatic cancer when treated with a combination of avutometinib, defactinib, and standard chemotherapy. This combination therapy demonstrated a higher partial response rate compared to historical data, suggesting a potential breakthrough in treatment efficacy.
Additionally, Verastem’s partner, GenFleet Therapeutics, reported positive initial results from their study of the KRAS G12D inhibitor, VS-7375, which showed effectiveness in treating advanced solid tumors, including non-small cell lung cancer and pancreatic cancer. The safety profile of VS-7375 was also favorable, with manageable adverse events and no dose-limiting toxicity observed. These promising developments, along with a strategic plan to expand clinical trials and a well-supported valuation model, underpin the Buy rating and the price target of $14.00 per share.

In another report released on May 23, Mizuho Securities also reiterated a Buy rating on the stock with a $16.00 price target.