MorphoSys upgraded to Neutral from Sell at Goldman Sachs

Goldman Sachs analyst Rajan Sharma upgraded MorphoSys to Neutral from Sell with a price target of $9.25, up from $3.50. The firm has increased confidence in the upcoming MANIFEST-2 readout for pelabresib and commercial opportunity in MF, the analyst tells investors in a research note. Goldman Sachs adds however that at current levels following strong year-to-date stock performance, the risk/reward heading into into the binary readout is “finely balanced”, stating that it prefers to look for a better entry point before turning more constructive on MorphoSys. Goldman Sachs further notes that while the selinexor efficacy data look optically positive, the tolerability is likely to limit its potential, as corroborated by feedback from physicians with experience of prescribing the drug.