Merus price target raised to $65 from $40 at Stifel

Stifel raised the firm’s price target on Merus to $65 from $40 and keeps a Buy rating on the shares. The stock continues to gain as investors anticipate higher probability of success and/or sales expectations for peto/pembro in first line treatment of head and neck squamous cell carcinoma, the analyst tells investors. The firm doesn’t believe this gain is attributed only to biotech excitement since there is solid supportive data and a $2B+ sales opportunity from pembro proxy.