TSX drops after Canadian index edges higher in prior session
Investing.com - BTIG raised its price target on Arvinas Inc. (NASDAQ:ARVN) to $14.00 from $10.00 on Thursday, while maintaining a Buy rating on the stock. This new target aligns closely with InvestingPro’s Fair Value assessment, suggesting the stock may be undervalued at its current price of $9.59.
The upgrade follows Arvinas and Pfizer’s decision to outlicense vepdegestrant, with BTIG now focusing on the company’s KRASG12D degrader ARV-806 for solid tumors as a key valuation driver.
BTIG noted that ARV-806 may have advantages over competing KRASG12D inhibitors and degraders, including greater potency that could limit off-target effects, ability to counter resistance mechanisms, and promotion of neoantigen presentation.
The firm believes positive Phase 1 data for ARV-806, expected in the second half of 2026, could drive Arvinas shares up by more than 50% from current levels, with potential downside limited to approximately 20%. The stock has shown strong momentum recently, with returns of 4.69% over the past week and has rebounded 63% from its 52-week low of $5.90.
BTIG has now included ARV-806 in its valuation model, which supports the new $14 price target, despite recent share price weakness following what the firm called a "vepdeg reset." InvestingPro data reveals Arvinas holds more cash than debt on its balance sheet with a current ratio of 5.64, though it’s quickly burning through cash. Discover more insights with InvestingPro’s comprehensive research report, available for over 1,400 US stocks including Arvinas.
In other recent news, Arvinas has reported promising preclinical data for its KRAS G12D protein degrader, ARV-806, which demonstrated potent degradation in pancreatic, colorectal, and lung cancer cell lines. This data was presented at the 2025 AACR-NCI-EORTC International Conference on Molecular Targets and Cancer Therapeutics in Boston. Additionally, Arvinas shared positive Phase 1 trial results for its LRRK2 degrader, ARV-102, which showed significant degradation in both healthy volunteers and Parkinson’s patients. These findings were presented at the International Congress of Parkinson’s Disease and Movement Disorders in Honolulu.
In terms of analyst activity, Goldman Sachs has downgraded Arvinas from Neutral to Sell, citing competitive risks in the HR+/HER2- metastatic breast cancer market that could affect the company’s vepdegestrant drug candidate. Conversely, Piper Sandler raised its price target for Arvinas to $16, maintaining an Overweight rating, following the promising data for the LRRK2 degrader. These developments reflect a mixed analyst outlook on Arvinas’s future prospects.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.