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On Thursday, Lucid (NASDAQ:LCID) Capital Markets initiated coverage on Cardiff Oncology (NASDAQ:CRDF), assigning a Buy rating and setting a price target of $14.00. The stock, currently trading at $3.01, has shown significant volatility with a beta of 1.73. According to Lucid Capital Markets, Cardiff Oncology, a clinical-stage biotechnology firm, is primarily driven by its lead asset, onvansertib, a PLK1 inhibitor. The company is currently developing onvansertib for the treatment of RAS-mutated metastatic colorectal cancer (mCRC), which has not been previously treated with bevacizumab. InvestingPro data reveals the company maintains a strong financial health score, particularly in price momentum and cash flow metrics.
The analysts at Lucid Capital Markets believe that onvansertib has a competitive edge and has shown encouraging results in this particular cancer indication. They predict that onvansertib could potentially reach approximately $2.9 billion in peak sales, assuming the clinical data continues to be positive. The anticipation of an update on the clinical data for this program in the first half of 2025 is seen as a near-term catalyst that could further validate the drug’s potential. Based on InvestingPro’s Fair Value analysis, the stock appears fairly valued at current levels, with analyst targets ranging from $10 to $20 per share. For deeper insights into Cardiff Oncology’s valuation and 12 additional ProTips, consider exploring the comprehensive Pro Research Report.
In addition to mCRC, onvansertib is also undergoing investigation for other types of cancers, such as metastatic pancreatic ductal adenocarcinoma (mPDAC), small cell lung cancer (SCLC), and triple negative breast cancer (TNBC). While data for these indications is limited, Lucid Capital Markets views any progress in these areas as a bonus to the company’s value.
The price target of $14.00 is broken down by Lucid Capital Markets into $12.00 per share for onvansertib’s potential in mCRC, $1.00 per share for mPDAC, and $1.00 per share for the value of the earlier pipeline and other indications. Cardiff Oncology finished the year 2024 with approximately $92 million in cash and equivalents, which Lucid Capital Markets estimates could fund the company’s operations into the first quarter of 2027. The company maintains a healthy current ratio of 7.08, with liquid assets well exceeding short-term obligations. However, InvestingPro analysis indicates the company is quickly burning through cash, with a negative free cash flow yield of -19% over the last twelve months.
In other recent news, Cardiff Oncology has reported its financial results for the fourth quarter of 2024, highlighting a strategic focus on its lead program and a robust cash position. The company completed a $40 million capital raise, which has bolstered its cash reserves, projecting its cash runway into the first quarter of 2027. Cardiff Oncology’s lead program, ONVANSERTIB, has shown promising results in clinical trials for metastatic colorectal cancer, with a favorable safety profile and efficacy, positioning the company as a potential leader in this therapeutic area. Additionally, H.C. Wainwright analyst Raghuram Selvaraju has raised the price target for Cardiff Oncology to $17.00, up from $13.00, while maintaining a Buy rating, based on anticipated updated results from the CRDF-004 clinical trial expected in the first half of 2025.
The CRDF-004 trial, which is nearing completion of enrollment, is designed to evaluate the efficacy of onvansertib in combination with chemotherapy and bevacizumab for RAS-mutated colorectal cancer. Preliminary results have been promising, with the higher dose of onvansertib achieving a 64% objective response rate, compared to 33% in the standard-of-care only arm. Cardiff Oncology plans to transition this study into a registrational trial, potentially leading to an accelerated approval pathway for onvansertib. The company’s financial performance and clinical trial advancements have been met with mixed market reactions, reflecting cautious investor sentiment despite the positive developments.
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