Gold prices slid below $4,000/oz amid profit-taking on Gaza ceasefire
Monday, JMP Securities maintained a Market Outperform rating and a $7.00 price target on Elevation Oncology (NASDAQ:ELEV), expressing continued confidence in the potential of the company’s EO-3021 therapy. With the stock currently trading at $0.51 and analyst targets ranging from $5 to $10, InvestingPro data shows two analysts have recently revised their earnings estimates upward. The firm’s analyst highlighted the promising initial response rate from data released in the second quarter of 2024, which surpassed both JMP Securities’ and other analysts’ expectations.
The EO-3021 treatment, currently under evaluation, has shown an initial response rate that exceeded JMP Securities’ 38% benchmark and the consensus estimate of 35%, even with a small patient sample size. This data serves as a preliminary validation of the therapy’s effectiveness and safety. The company, with a market capitalization of $30.25 million, maintains a strong liquidity position with a current ratio of 21.21, according to InvestingPro data.
Elevation Oncology has adjusted its clinical approach by setting a prospective cutoff for future studies, particularly after considering the less likely benefit for patients with low or no expression of CLDN18.2, a biomarker relevant to the therapy. This strategic move aligns with other antibody-drug conjugates (ADCs) that have shown similar patterns in efficacy.
The firm anticipates that the first half of 2025 will bring a significant update that could expand the patient pool for EO-3021. This update is expected to further substantiate the initial monotherapy data and support the therapy’s development.
Investors had previously held some hope for EO-3021’s efficacy in the CLDN18.2-low or non-expressing patient group, which represents a less competitive area of treatment. However, the recent strategic shift by Elevation Oncology appears to have been largely anticipated by the market, with most investors not heavily relying on this particular outcome.
Overall, JMP Securities’ stance on Elevation Oncology remains positive, with the expectation that forthcoming data in the first half of 2025 will provide meaningful validation for EO-3021 and its potential role in cancer therapy. InvestingPro analysis suggests the stock is currently undervalued, with additional insights available including 8 key ProTips and comprehensive financial metrics that could help investors make more informed decisions about this volatile stock (Beta: 1.38).
In other recent news, Elevation Oncology announced the upcoming departure of its Chief Scientific Officer, David Dornan, Ph.D., effective February 17, 2025. Dr. Dornan will remain as a consultant to ensure a smooth transition for the company. Additionally, Elevation Oncology has been making strides in its clinical trials, particularly with its advanced cancer treatment candidate EO-3021. The company has started dosing in a Phase 1 clinical trial for EO-3021 in combination with other drugs for advanced gastric cancer, with initial data expected in late 2025 or early 2026. Elevation Oncology also plans to present further monotherapy data from its ongoing trials in the first half of 2025. Furthermore, the firm has nominated EO-1022 as a development candidate for an antibody-drug conjugate targeting HER3-expressing solid tumors, with preclinical data anticipated in 2025. The company has entered a global licensing agreement with Synaffix B.V. to access ADC technology, exclusive to HER3 targets. These developments highlight Elevation Oncology’s focus on advancing its pipeline of targeted cancer therapies.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.