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Investing.com - Raymond James has assumed coverage on Revolution (NASDAQ:RVMD) with a Strong Buy rating and a price target of $72.00 on Friday. The stock, which has surged over 14% in the past week and commands a market capitalization of $8.64 billion, is currently showing strong momentum despite InvestingPro data indicating overbought conditions.
The firm’s decision is based on four key points, including the broad activity of Revolution’s RAS inhibitor daraxonrasib, which Raymond James views as having advantages over mutant selective approaches on response durability.
Raymond James believes daraxonrasib is positioned to become the new standard of care in RAS-mutant advanced pancreatic cancer, initially in second-line treatment and later in first-line settings either as monotherapy or combined with chemotherapy.
The firm also notes Revolution’s potential in first-line non-small cell lung cancer treatment, highlighting possible durable benefits when combining daraxonrasib with checkpoint inhibitors or pairing it with the company’s G12C selective KRAS inhibitor elironrasib.
Raymond James points out that Revolution is well-capitalized for a product launch in second-line pancreatic cancer, suggesting the company could develop into a global commercial entity or become a takeover target, despite a recent royalty and debt arrangement for daraxonrasib.
In other recent news, Revolution Medicines announced promising clinical results for its experimental cancer drug, daraxonrasib, used in treating metastatic pancreatic ductal adenocarcinoma. The data revealed a 29% objective response rate and 95% disease control among patients, with median progression-free survival at 8.1 months and overall survival at 15.6 months. Following this update, Needham raised its price target for Revolution to $66, maintaining a Buy rating due to the drug’s potential impact. Truist Securities also initiated coverage of Revolution Medicines with a Buy rating and set a price target of $99, emphasizing the company’s focus on targeting RAS mutations. Oppenheimer reiterated its Outperform rating and $75 price target, noting the company’s guidance for initial data from the daraxonrasib RASolute-302 study expected in 2026. Piper Sandler joined in, initiating coverage with an Overweight rating and a $75 price target, highlighting the potential of daraxonrasib in treating metastatic pancreatic ductal adenocarcinoma. These developments underscore the growing interest and confidence in Revolution Medicines’ strategic focus and drug pipeline.
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