e.l.f. Beauty stock plummets 20% as revenue and guidance fall short of expectations
Investing.com - RBC Capital initiated coverage on Revolution (NASDAQ:RVMD) with an Outperform rating and a price target of $77.00 on Monday. The target represents significant upside from the current price of $58.84, with Revolution currently trading near its 52-week high of $62.40.
RBC Capital analyst Leonid Timashev stated that Revolution is "best positioned to execute on targeting RAS across oncology" due to its "impressive efficacy data, development lead, and focused pipeline." This positive outlook aligns with the broader analyst consensus, which according to InvestingPro data, stands at a strong buy recommendation.
The analyst highlighted a Phase III readout expected in 2026 that is "highly likely to hit" and noted that the regulatory path has been "significantly derisked by the recent CNPV."
RBC Capital estimates a commercial opportunity exceeding $7 billion for Revolution’s daraxonrasib, based on their research indicating "upwards of 50% intent to prescribe" among healthcare providers.
The firm believes Revolution’s shares currently undervalue the market enthusiasm for daraxonrasib, and while acknowledging that "a certain amount of success is already priced in," RBC maintains that "RVMD’s approach is likely to succeed and differentiate" from first-generation KRAS inhibitors that have experienced slower launches. InvestingPro data shows analyst targets ranging from $66 to $99, with RBC’s $77 target falling within this range. InvestingPro Tips indicate the stock may be in overbought territory, with several additional insights available in the comprehensive Pro Research Report.
In other recent news, Revolution Medicines announced that the U.S. Food and Drug Administration (FDA) has granted Orphan Drug Designation to its cancer treatment, daraxonrasib, for pancreatic cancer. This designation is significant as daraxonrasib is currently being tested in a global Phase 3 trial for patients with second-line metastatic pancreatic ductal adenocarcinoma. Additionally, the FDA has awarded a non-transferable priority voucher to Revolution Medicines for daraxonrasib under the Commissioner’s National Priority Voucher pilot program. This voucher is part of an initiative to expedite the development of treatments for serious conditions. Furthermore, Revolution Medicines reported promising clinical data for its experimental drug elironrasib in non-small cell lung cancer patients with KRAS G12C mutations, showing a 42% objective response rate. Mizuho has initiated coverage of Revolution Medicines with an Outperform rating, citing the potential of its RAS(ON) inhibitors in treating various cancers, including pancreatic and lung cancer. These developments reflect the company’s ongoing efforts and progress in advancing its oncology treatments.
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