Merus, the Healthcare sector company, was revisited by a Wall Street analyst today. Analyst Andres Y. Maldonado from H.C. Wainwright downgraded the rating on the stock to a Hold and gave it a $97.00 price target.
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Andres Y. Maldonado has given his Hold rating due to a combination of factors surrounding the recent acquisition announcement of Merus by Genmab. The acquisition, valued at approximately $8.0 billion, offers a significant premium to Merus’ recent stock price, suggesting that the full value of the stock is already reflected in the deal.
Given the strategic nature of the acquisition, which includes Merus’ promising lead asset, petosemtamab, the rating reflects the assumption that the stock’s potential is now fully priced. Additionally, the revised price target of $97 aligns with the acquisition offer, down from a previous target of $135, indicating a recalibration based on the acquisition’s terms. The Hold rating also considers various risks, including regulatory and commercial uncertainties, which could impact the achievement of the price target.
According to TipRanks, Y. Maldonado is a 4-star analyst with an average return of 9.9% and a 53.38% success rate. Y. Maldonado covers the Healthcare sector, focusing on stocks such as ImmunityBio, Candel Therapeutics, and Merus.
In another report released today, Canaccord Genuity also downgraded the stock to a Hold with a $97.00 price target.