Verastem, the Healthcare sector company, was revisited by a Wall Street analyst yesterday. Analyst Justin Zelin from BTIG reiterated a Buy rating on the stock and has a $20.00 price target.
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Justin Zelin has given his Buy rating due to a combination of factors that highlight Verastem’s promising developments in their KRAS G12D inhibitor, VS-7375. The company presented encouraging data at WCLC25, showing significant improvements in the objective response rate and disease control rate among NSCLC patients, with notable efficacy in those with brain metastases. This suggests that VS-7375 could be a leading candidate in its class, particularly with its ability to penetrate the central nervous system, addressing a critical unmet need.
Additionally, the safety profile of VS-7375 remains manageable, with a low discontinuation rate and proactive strategies to mitigate adverse effects, which is crucial as the program advances. The drug’s performance benchmarks favorably against competitors, showcasing a higher response rate and emerging durability. These factors, combined with a strategic focus on broader development and a positive valuation outlook, underpin Zelin’s confidence in Verastem’s potential, justifying the Buy rating.
Based on the recent corporate insider activity of 44 insiders, corporate insider sentiment is negative on the stock. This means that over the past quarter there has been an increase of insiders selling their shares of VSTM in relation to earlier this year.