Merus price target lowered to $40 from $45 at Stifel

Stifel analyst Bradley Canino lowered the firm’s price target on Merus to $40 from $45 and keeps a Buy rating on the shares. After refreshing the firm’s model following ESMO updates and to better align with the company’s strategic focus on petosemtamab, the firm’s $900M risk-adjusted peak sales estimate for Merus are derived 80% from petosemtamab and 20% from MCLA-129 and it no longer models zenocutuzumab because it will not be launched without a commercial partner.