Erasca initiated with a Buy at Stifel

Stifel analyst Laura Prendergast initiated coverage of Erasca (ERAS) with a Buy rating and $4 price target. The firm highlights a valuation gap between Revolution Medicines’ (RVMD) daraxonrasib and Erasca’s ERAS-0015, telling investors that while the former’s pan-RAS inhibitor is expected to have a substantial first-to-market advantage, it believes the extensive total addressable market “leaves plenty of room for a major second mover.” The firm models ERAS-0015 to launch in the second half of 2030 and generate $1.56B in revenue by 2035, the analyst tells investors.