Merus stock target holds at $88, Truist affirms Buy rating

On Monday, Truist Securities maintained a Buy rating on Merus N.V. (NASDAQ:MRUS) shares, with a steady price target of $88.00. The stock, currently trading at $55.14 with a market capitalization of $3.8 billion, has received strong backing from Wall Street analysts, with consensus targets ranging from $59 to $110 per share. According to InvestingPro data, the company maintains a FAIR financial health score. The endorsement comes after Merus presented an update on its Phase 2 study combining Peto with Pembro, a treatment regimen that has shown impressive results.

The analyst from Truist Securities praised the update, highlighting the 79% 12-month overall survival rate reported in the study. This performance was noted as superior compared to the rival Ficera + Pembro combination. The market has responded positively to these developments, with the stock posting an impressive 32.7% return over the past week. The analyst expressed confidence that the data presented would not be overshadowed by Bicara’s (BCAX, NR) presentation at the upcoming ASCO meeting.

According to the analyst, the recent study results solidify Peto’s position as the best-in-class treatment option, with a comprehensive comparison table available on page three of their report. The analyst’s positive outlook is further bolstered by Merus’s indication that data from one or both of its Phase 3 programs could be available as early as 2026.

The update from Merus N.V. has not only reinforced the analyst’s existing Buy rating but also underlined the absence of any negative points for detractors to focus on. The promising data from the Peto + Pembro Phase 2 study has been characterized as both significant in its effectiveness and devoid of flaws, providing a strong basis for Truist Securities’ reiterated stance on the stock. With over 10 additional key insights available on InvestingPro, including detailed financial health metrics and growth projections, investors can access comprehensive analysis to make informed decisions about this biotech company’s potential.

In other recent news, Merus N.V. held its annual general meeting, where shareholders approved several key proposals, including the adoption of the Dutch statutory annual accounts for 2024 and the appointment of KPMG Accountants N.V. as the external auditor for 2025. The meeting also saw the re-appointment of Anand Mehra, M.D., and Maxine Gowen, Ph.D., as non-executive directors, with shareholders authorizing the board to acquire company shares. Truist Securities maintained a Buy rating on Merus, with a price target of $88, expressing optimism about the upcoming data presentation for the cancer treatment Peto + Pembro, particularly for head and neck cancer. Stifel analysts also reiterated a Buy rating with a $93 target, citing promising clinical data and FDA validation through a Breakthrough Therapy Designation for petosemtamab. H.C. Wainwright analyst Andrew Fein maintained a Buy rating and an $85 target, highlighting ongoing Phase 3 trials for petosemtamab in head and neck squamous cell carcinoma. Fein noted that updated clinical data is expected in the first half of 2025, focusing on response rates and progression-free survival outcomes. Merus announced the publication of the mechanism of action for petosemtamab, detailing its bispecific antibody targeting EGFR and LGR5, which is significant for colorectal cancer treatment. The company is conducting phase 3 trials for petosemtamab, with substantial enrollment expected by the end of the year, and initial data for metastatic colon cancer anticipated in the second half of 2025.

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