Merus initiated with an Overweight at Wells Fargo

Wells Fargo analyst Eva Fortea Verdejo initiated coverage of Merus (MRUS) with an Overweight rating and $91 price target The firm thinks petosemtamab could disrupt treatment in second-line head and neck squamous cell carcinoma and says first-line data should further de-risk it in earlier lines, with a larger market opportunity. Petosemtamab’s mechanism of action in metastatic colorectal cancer remains underappreciated, creating a favorable risk/reward into the Phase 2 data readouts, the analyst tells investors in a research note.