In a report released today, Soumit Roy from JonesTrading maintained a Buy rating on Bicara Therapeutics Inc., with a price target of $22.00.
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Soumit Roy’s rating is based on several compelling factors that suggest a promising future for Bicara Therapeutics Inc. A significant influence is the recent acquisition of Merus by Genmab for approximately $8 billion, which highlights the potential upside for Bicara’s valuation. Bicara’s main competitor, Merus, is in a similar phase of development for their cancer treatment, yet Bicara’s drug, ficerafusp alfa, has shown superior clinical benefits in trials. The combination of Bicara’s drug with Keytruda has demonstrated significantly better outcomes compared to Keytruda alone, particularly in hard-to-treat HPV-negative patients.
Roy also notes that Bicara’s current market valuation appears undervalued compared to Merus, providing an attractive entry point for investors. Additionally, Bicara’s focus on a select patient population with a lower bar for success and potentially best-in-class clinical benefits positions it favorably against Merus. If Merus’s upcoming data does not surpass Bicara’s, the valuation discrepancy could drive Bicara’s stock higher. Overall, these factors contribute to Roy’s optimistic Buy rating for Bicara Therapeutics.
In another report released on September 17, H.C. Wainwright also maintained a Buy rating on the stock with a $40.00 price target.