CytomX Therapeutics initiated with a Buy at Guggenheim

Guggenheim analyst Michael Schmidt initiated coverage of CytomX Therapeutics (CTMX) with a Buy rating and $10 price target CytomX Therapeutics’ lead asset, Varseta-M, has a broad development opportunity across metastatic colorectal cancer based on initial Phase 1 data last year showing “extraordinary” antitumor activity in a heavily pre-treated, heterogenous population, the analyst tells investors. The firm’s one-year price target of $10 per share reflects 30% odds of success for Varseta-M in third-line and later CRC, notes the analyst, who estimates potential upside to $20 and potential downside to 50c.