Stifel maintains Bicara stock Buy rating, $48 target post-ASCO

On Friday, Stifel analysts reiterated their Buy rating and $48.00 price target for Bicara Therapeutics Inc (NASDAQ:BCAX) stock, representing significant upside from its current price of $9.27. According to InvestingPro data, analysts maintain a strong Buy consensus with price targets ranging from $8 to $48. The reaffirmation came as the American Society of Clinical Oncology (ASCO) published abstracts after the market closed, prompting discussions about competitive positions in the treatment of 1L SCCHN (squamous cell carcinoma of the head and neck).

Bicara’s abstract highlighted positive data for HPV-negative patients, including an improved complete response (CR) rate now at 21%, and a 12-month landmark duration of response (DOR) and overall survival (OS) of 60/61% respectively, with a median overall survival (mOS) of over 20 months. These results were deemed encouraging by Stifel analysts.

Despite the promising data from Bicara, analysts noted that full ASCO data from Merus NV (NASDAQ:MRUS) also contained impressive points for its intention-to-treat (ITT (NYSE:ITT)) population, which covers both HPV-positive and negative patients. Merus reported a 14% CR rate and a 79% 12-month landmark OS, which are considered significant improvements.

The post-close disclosure of Merus’s data has led to a decline in Bicara’s stock value, with InvestingPro data showing a 36% drop in the past week alone. Despite this decline, the company maintains strong financial health with a current ratio of 24.6 and more cash than debt on its balance sheet. Stifel analysts advised that while both data sets from Bicara and Merus are differentiated from the current standard-of-care and existing cetuximab/PD-1 IST data, drawing competitive conclusions from small and non-randomized patient cohorts is complex and potentially unreliable.

Stifel suggests investors await more detailed data from Bicara at the upcoming ASCO meetings and recommends buying Bicara stock on any price weakness, maintaining confidence in the company’s prospects. Based on InvestingPro’s Fair Value analysis, BCAX appears undervalued at current levels. Subscribers can access 12 additional ProTips and comprehensive financial metrics to make more informed investment decisions.

In other recent news, Bicara Therapeutics has released interim data from its Phase 1/1b clinical trial for its drug candidate, ficerafusp alfa, in combination with pembrolizumab. The trial focuses on treating recurrent/metastatic head and neck squamous cell carcinoma (HNSCC). The data, now available on the American Society of Clinical Oncology (ASCO) website, shows a 64% objective response rate in the human papillomavirus (HPV)-negative population, with a median progression-free survival of 9.8 months. Despite the positive data, Bicara’s stock experienced a significant drop, highlighting the volatile nature of biopharmaceutical stocks. TD Cowen maintained a Buy rating for Bicara, citing the promising data and favorable risk/reward profile ahead of the ASCO meeting. Meanwhile, H.C. Wainwright adjusted its price target for the company to $41 from $44 but reaffirmed a Buy rating. The upcoming ASCO meeting will feature an oral presentation of the trial data, led by Dr. Christine Chung of the Moffitt Cancer Center. This presentation will include further insights into the overall survival and duration of response metrics.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.