Merus added to Conviction List at Needham

Needham analyst Ami Fadia raised the firm’s price target on Merus (MRUS) to $65 from $42 and keeps a Buy rating on the shares. The firm is also adding the name to its Conviction List in place of Avadel Pharmaceuticals (AVDL). Merus is enjoying greater investor enthusiasm around the upcoming data for Peto in first-line HNSCC, or head and neck squamous cell carcinoma, in combo with pembro, the analyst tells investors in a research note. Needham adds that its market model refresh estimates a sales potential for Peto of over $3B in first-line and over $850M in second-line HNSCC by 2035.