Deciphera upgraded to Buy from Hold at Stifel

Stifel analyst Bradley Canino upgraded Deciphera Pharmaceuticals to Buy from Hold with a price target of $20, up from $14. The firm and sees a favorable risk/reward after the 40% pullback in shares form the 2023 high. The analyst expects continued growth in Qinlock’s base business, sees potential near-term commercial diversification with a vimseltinib launch, and long-term upside from potential Qinlock label expansions. Stifel previously viewed the new Qinlock Phase 3 in second-line exon 11+17/18 gastrointestinal stromal tumors as likely uncompetitive against the Theseus pan-KIT approach, but with the discontinuation of that program, the firm now sees Deciphera’s strategy as competitive with sunitinib-based alternatives.