JFrog stock rises as Cantor Fitzgerald maintains Overweight rating after strong Q2
On Wednesday, Summit Therapeutics plc (NASDAQ:SMMT) stock received an upgrade from Citi, moving from Neutral to Buy, with a new price target (PT) set at $35.00, up from the previous $23.00. The upgrade comes after a period of cautious neutrality from the firm. The stock has shown remarkable performance, delivering a 441% return over the past year. According to InvestingPro data, the company currently trades at a Price/Book ratio of 38.41, suggesting premium valuation levels.
Citi analysts cited a comprehensive analysis using their Clinical Trial Simulator for HARMONi-2 as the basis for their renewed optimism. They now believe that Summit Therapeutics’ HARMONi-2 has approximately a 70% chance of producing a positive outcome on overall survival (OS) at the anticipated year-end 2025 readout. This positive projection is a significant factor in the upgrade and PT increase. InvestingPro analysis shows the company maintains strong financial flexibility with a current ratio of 10.15, indicating robust ability to meet short-term obligations.
The report from Citi analysts highlighted the potential for ivonescimab, Summit’s therapeutic candidate, to be a transformative treatment in non-small cell lung cancer (NSCLC). The analysts expressed strong conviction that, assuming successful validation of OS data, ivonescimab could be on the verge of establishing a new standard in immunotherapy.
Summit Therapeutics had previously seen a downgrade to Neutral in the third quarter of 2024, following a substantial positive re-rating of the stock after the World Conference on Lung Cancer (WCLC). At that time, Citi had viewed the risk/reward balance less favorably. However, the current upgrade reflects a significant shift in the firm’s assessment of the company’s prospects.
The Citi report underscores the potential for ivonescimab to open "the flood gates for a new era in immunotherapy," should the forthcoming results confirm the drug’s efficacy. This optimistic outlook is now reflected in the elevated stock rating and price target for Summit Therapeutics. Analyst targets now range from $23.64 to $45.03, with the stock showing a negative beta of -1.04, indicating it often moves counter to market trends. For deeper insights and additional analysis, including 11 more ProTips and comprehensive valuation metrics, check out the detailed Pro Research Report available on InvestingPro.
In other recent news, Summit Therapeutics has been the focus of multiple developments. The company has granted stock options to new employees, issuing options to purchase up to 147,500 shares at an exercise price of $20.13 per share, and an additional 122,650 shares at $18.50 per share. These options, part of inducement awards, will vest over four years. On the analyst front, Cantor Fitzgerald initiated coverage on Summit Therapeutics with an Overweight rating, citing the undervaluation of the company’s shares and the potential of its lead drug candidate, ivonescimab. Evercore ISI also launched coverage with an Outperform rating and a $30 price target, highlighting ivonescimab’s promising clinical performance. Stifel maintained a Buy rating with a $40 price target, expressing confidence in the drug’s potential to improve patient outcomes in lung cancer treatment. Summit Therapeutics is conducting Phase 3 trials for ivonescimab, with additional pivotal trials managed by its partner Akeso in China. These trials are crucial for securing regulatory approvals and assessing the drug’s market potential.
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