US stock futures inch higher with Q3 earnings on tap
On Monday, H.C. Wainwright analyst Swayampakula Ramakanth reaffirmed a Buy rating and a $6.00 price target for Elevation Oncology (NASDAQ:ELEV), following the company’s release of their fourth-quarter financial and operational results on March 6. The price target represents significant upside from the current trading price of $0.51, with InvestingPro data showing analyst targets ranging from $5 to $10 per share. Elevation Oncology has announced plans to present preclinical data for their HER3-targeting ADC, EO-1022, at the upcoming 2025 American Association for Cancer Research (AACR) meeting in April. The company is also on track to file an Investigational New Drug (IND) application for EO-1022 in 2026.
The analyst highlighted that preclinical data from a similar HER3-targeting ADC candidate showed a 121.7% tumor growth inhibition in a HER3-expressing patient-derived xenograft (PDX) pancreatic cancer model. This was a significant finding compared to the 71.8% growth inhibition with the experimental HER3-targeting ADC, patritumab deruxtecan, which is currently being developed by Merck (NSE:PROR) and Daiichi Sankyo.
Furthermore, Ramakanth drew attention to the results from the Phase 2 HERTHENA-Lung01 study, which evaluated patritumab deruxtecan in patients with EGFR-mutant NSCLC who had received prior therapy. The study demonstrated an objective response rate (ORR) of 29.8%, a median progression-free survival (mPFS) of 5.5 months, and a median overall survival (mOS) of 11.9 months. InvestingPro analysis reveals that while Elevation Oncology maintains a strong liquidity position with a current ratio of 21.21, the company’s overall financial health score remains weak, typical for early-stage biotech companies. Get access to 6 more exclusive InvestingPro Tips and comprehensive financial metrics to make informed investment decisions. These results serve as a potential benchmark for EO-1022 as it prepares to enter clinical trials.
In his commentary, Ramakanth stated, "We maintain our Buy rating on ELEV and our 12-month price target of $6.00 per share." The analyst’s reiteration of the Buy rating and price target reflects a continued positive outlook for Elevation Oncology’s stock performance over the next year, despite the stock’s challenging performance with an 88.82% decline over the past year. The company, currently valued at $30.25 million, shows promising potential according to InvestingPro’s Fair Value analysis, suggesting the stock may be undervalued at current levels.
In other recent news, Elevation Oncology has made significant strides in its clinical trials and development pipeline. The company reported promising initial results for its EO-3021 therapy, with a response rate exceeding expectations from both JMP Securities and other analysts. This therapy, targeting Claudin 18.2 in gastric and gastroesophageal junction cancers, is currently in a Phase 1 trial, and further data is expected in the first half of 2025. Elevation Oncology also announced the nomination of EO-1022 as a new candidate targeting HER3-expressing solid tumors, with preclinical data anticipated in 2025 and an investigational new drug application planned for 2026.
Additionally, the company disclosed that its Chief Scientific Officer, Dr. David Dornan, will depart in February 2025 to pursue new opportunities, although he will remain as a consultant to aid in the transition. Meanwhile, Elevation Oncology has entered a global licensing agreement with Synaffix B.V., granting access to advanced ADC technology for its HER3-targeted therapies. This collaboration aims to enhance the development of targeted cancer therapies.
JMP Securities maintained a Market Outperform rating on Elevation Oncology, citing confidence in the EO-3021 therapy’s potential. Investors and stakeholders are closely monitoring these developments as the company continues to focus on advancing its oncology pipeline.
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