Arcus Biosciences selloff a buying opportunity, says Citi

Citi analyst Yigal Nochomovitz recommends using the selloff yesterday in shares of Arcus Biosciences as a buying opportunity. The ARC-7 plenary session the American Society of Clinical Oncology reinforced the analyst’s view post-yesterday’s abstract that TIGIT is providing a "real signal" over PD-1 in 1L PD-L1-high non-small cell lung cancer. "Some market participants are highlighting that ARC-7 was open-label to discount some of the efficacy conclusions, but we would actually argue the opposite meaning that since the triplet isn’t behaving better than doublet, that outcome would seem to substantially limit criticism around inherent bias," Nochomovitz tells investors in a research note. He keeps a Buy rating on Arcus Biosciences with a $42 price target.