Arcus Biosciences price target raised to $23 from $21 at BofA

BofA analyst Jason Zemansky raised the firm’s price target on Arcus Biosciences (RCUS) to $23 from $21 and keeps a Neutral rating on the shares. Roche’s (RHHBY) SKY-01 second interim leak was “a surprise,” but “more telling” was the level of initial support experienced by shares of TIGIT developers, says the analyst, which calls the reaction following the recent Roche data leak “a clear indication of how far expectations for the next-gen I/O have fallen.” Looking ahead, the firm “wouldn’t be surprised if there’s more volatility in the space” ahead of catalysts that include initial ORR data from EDGE-Gastric, Arcus’ phase 2 in upper GI cancers due in Q4, and the SKY-01 final readout due in Q4 or Q1 of 2024, the analyst added. The firm is “modestly” raising its risk adjustments for domvanalimab, which increases its price target, though it sees “limited opportunities for a re-rating given the questions over Arcus’ late-stage pipeline,” the analyst tells investors.