Analyst Evan Seigerman from BMO Capital maintained a Hold rating on Merus and keeping the price target at $97.00.
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Evan Seigerman’s rating is based on the current data available for Merus’s petosemtamab in metastatic colorectal cancer (mCRC), which shows some initial signs of efficacy but lacks sufficient evaluable patients to make a definitive judgment. The data from the first-line treatment cohort, while promising, is based on a very small sample size, with only three evaluable patients and responses that are not fully confirmed. Similarly, the second and third-line treatment data are difficult to interpret due to limited confirmed responses and incomplete patient follow-up.
Seigerman also notes that the upcoming full data presentation will be crucial for a clearer understanding of petosemtamab’s efficacy in mCRC. However, he maintains that the primary value driver for Merus remains its head and neck squamous cell carcinoma (HSNCC) program. The potential acquisition of Merus by Genmab is not expected to be influenced by the current mCRC data, and the transaction is anticipated to close as planned, supporting the Hold rating on Merus’s stock.
Seigerman covers the Healthcare sector, focusing on stocks such as Vertex Pharmaceuticals, Novo Nordisk, and Bristol-Myers Squibb. According to TipRanks, Seigerman has an average return of 5.3% and a 48.39% success rate on recommended stocks.
In another report released today, Canaccord Genuity also maintained a Hold rating on the stock with a $97.00 price target.