Maryland reaches $340 million Conowingo Dam agreement with Constellation
Investing.com - Barclays downgraded Merus N.V. (NASDAQ:MRUS) from Overweight to Equalweight on Tuesday, while reducing its price target to $97.00 from $112.00. The stock is currently trading near its 52-week high of $94.56, with InvestingPro data indicating overbought conditions.
The downgrade follows significant share price appreciation, with Merus stock having returned 589% to shareholders since its IPO in 2016 and 37% over the past year, according to Barclays. InvestingPro data shows even more impressive recent gains, with a 122% return over the past six months and a robust 87% return over the last year. Get access to 18 additional InvestingPro Tips and comprehensive analysis for MRUS.
Barclays based its valuation on a sum-of-the-parts discounted cash flow analysis, valuing Merus’s petosemtamab treatment for head and neck cancer at approximately $86 per share.
The remaining portion of the $97 price target accounts for cash, zenocutuzumab royalties, and potential milestone payments, according to the research note.
Barclays acknowledged the value creation from the Merus platform and highlighted petosemtamab’s "blockbuster potential" despite the rating downgrade.
In other recent news, Merus N.V. has been the subject of significant developments following the announcement of its acquisition by Genmab. The acquisition involves an all-cash transaction valued at $8 billion, with Genmab offering $97 per share, representing a 41% premium over Merus’s previous closing price. This acquisition has led to a series of analyst actions, including downgrades from Guggenheim and UBS, both shifting their ratings from Buy to Neutral. Guggenheim also adjusted its price target to $97.00 from $109.00, while UBS raised its target to $97.00 from $72.00.
Barclays initiated coverage of Merus with an Overweight rating and set a price target of $112.00, citing the company’s antibody platform’s commercial validation. Meanwhile, BofA Securities maintained its Buy rating with a $92.00 price target, emphasizing the strong performance of Merus’s lead asset, petosemtamab, in treating head and neck squamous cell carcinoma. These recent developments highlight the varied analyst perspectives on Merus’s future potential amid the ongoing acquisition process.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.