Analyst Andres Y. Maldonado of H.C. Wainwright maintained a Buy rating on Merus (MRUS – Research Report), with a price target of $85.00.
Andres Y. Maldonado has given his Buy rating due to a combination of factors surrounding Merus’s promising clinical data and potential market positioning. The company is expected to present updated data at ASCO 2025, focusing on the combination of petosemtamab and pembrolizumab in first-line PD-L1+ HNSCC. Previous data has already shown a high overall response rate (ORR) of 67%, which positions the combination as potentially best-in-class compared to existing treatments. The anticipated ORR for the full evaluable population is expected to remain strong, likely in the 60-65% range, which would surpass historical and current benchmarks.
Additionally, the 12-month overall survival (OS) rate is a critical metric, with Merus aiming for a rate of 65-70%, which would significantly improve upon existing benchmarks and support the likelihood of accelerated approval. The durability of the progression-free survival (PFS) is also noteworthy, with expectations of achieving a median PFS in the 8-10 month range, further underscoring the strength of the treatment combination. These factors collectively contribute to the positive outlook and Buy rating for Merus’s stock.