Stifel cuts Mirati price target to $73, says move lower ‘overdone’

Stifel analyst Benjamin Burnett lowered the firm’s price target on Mirati Therapeutics to $73 from $106 and keeps a Buy rating on the shares, arguing that the stock’s move lower has been "overdone" even though he says the KRYSTAL-7 data "represent a significant setback relative to our expectations." However, the regimen "looks about as active as pembro+chemo" and management outlined a strategy to test adagrasib+pembro against pembro monotherapy in PD-L1 high patients, which he thinks could succeed. Assuming adagrasib+pembro has a 65% probability-of-success in only the PD-L1 high first-line NSCLC population, he estimates the potential for $503M risk-adjusted revenue at peak, Burnett tells investors.