CG Oncology stock price target lowered to $53 at RBC Capital

Investing.com - RBC Capital has lowered its price target on CG Oncology (NASDAQ:CGON) to $53.00 from $68.00 while maintaining an Outperform rating on the stock. The company, currently trading at $25.69 with a market capitalization of $1.9 billion, has seen its shares decline nearly 8% over the past week.

The firm expressed confidence in CG Oncology’s cancer treatment Creto ahead of upcoming second-half updates, suggesting topline readouts in HR NMIBC and BCG-naive patients could potentially drive up to 20% upside.

RBC Capital noted that durability remains a key focus for investors, adding that Creto should be competitive with, if not better than, Johnson & Johnson (NYSE:JNJ)’s TAR-200 treatment.

The research firm believes CG Oncology is on track to become a commercial company by 2026, with Biologics License Application (BLA) submission filing likely to begin in the current half-year period.

According to RBC Capital’s analysis, Creto has worldwide peak revenue potential of $2.3 billion by 2034, and the firm continues to recommend buying the stock despite the lower price target.

In other recent news, CG Oncology has been the focus of several analyst updates and clinical developments. UBS reiterated a Buy rating with a $60 price target, highlighting the stability and effectiveness of CG Oncology’s Cretostimogene treatment compared to TAR-200, with a notable 12-month complete response rate of 46.4%. Cantor Fitzgerald maintained an Overweight rating with a $75 price target, citing potential peak sales of over $2 billion for Cretostimogene, especially as a follow-up treatment for patients who relapse after using TAR-200. Morgan Stanley (NYSE:MS) also adjusted its price target for CG Oncology from $52 to $56, factoring in the anticipated launch timing of Cretostimogene in the second half of 2026. Meanwhile, Goldman Sachs resumed coverage with a Buy rating and a $40 price target, underscoring the treatment’s safety profile and market potential in the bladder cancer space. JPMorgan initiated coverage with an Overweight rating and a $41 price target, recognizing Cretostimogene’s favorable positioning due to its unique mechanism of action and safety profile. The recent updates from the American Urological Association conference have further bolstered analysts’ confidence in CG Oncology’s market prospects. These developments indicate a growing interest and optimism among analysts regarding CG Oncology’s potential in the oncology market.

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