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On Monday, analysts at Cantor Fitzgerald reiterated an Overweight rating on Summit Therapeutics plc (NASDAQ:SMMT) stock, despite the stock’s sharp 30% decline over the past week. The analysts expressed confusion over recent stock movements and emphasized the uneven awareness of Summit’s story among investors. The stock has shown remarkable resilience over the longer term, posting a 110% gain over the past year.
The analysts noted that the trading dynamics of Summit Therapeutics could be influenced by varying investor perspectives from different regions. They suggested that communication and information dissemination about the company might be inconsistent, contributing to the stock’s volatility. According to InvestingPro data, analysts maintain a strong buy consensus with price targets ranging from $30 to $44 per share.
In their commentary, the analysts highlighted that many financial journalists have focused on the potential risk of Summit’s HARMONi not supporting FDA approval. This concern stems from the lack of statistical significance in overall survival data.
Despite these concerns, Cantor Fitzgerald maintains a positive outlook on Summit Therapeutics, reflected in their continued Overweight rating. The firm’s analysts remain confident in the company’s prospects, even as they acknowledge the challenges in investor communication and perception.
In other recent news, Summit Therapeutics has been in the spotlight due to its promising oncology treatment, ivonescimab. The company announced encouraging top-line results from its Phase 3 HARMONi trial, which evaluated ivonescimab in combination with chemotherapy for EGFR-mutated non-small cell lung cancer. The trial met its primary endpoint, showing a statistically significant improvement in progression-free survival, although the overall survival trend did not reach statistical significance. Despite this, Summit plans to file a Biologics License Application, though the timing is uncertain as the FDA requires a statistically significant overall survival benefit for approval.
Analysts have shown varied reactions to these developments. JMP Securities maintained a Market Outperform rating with a $40 price target, citing the drug’s potential to make a significant impact on patient lives. Clear Street initiated coverage with a Buy rating and a $33 price target, highlighting the potential annual revenue exceeding $10 billion for ivonescimab. TD Cowen also upgraded the stock to Buy, driven by ivonescimab’s superior results compared to existing therapies.
Summit Therapeutics reported a first-quarter loss of $62.9 million but maintains a strong cash position of $361 million, which analysts at Cantor Fitzgerald believe is sufficient to last into the end of the year. The company’s collaboration with Pfizer (NYSE:PFE) aims to expand ivonescimab’s market reach, potentially moving beyond the success achieved by Keytruda. Summit’s leadership remains confident in ivonescimab’s potential to benefit patients globally, with plans to present more complete data at a future medical conference.
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