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On Thursday, Stifel analysts reiterated their Buy rating and $93.00 price target for Merus N.V. (NASDAQ:MRUS) stock, which currently trades at $47.12 with a market capitalization of $3.25 billion. The firm’s optimism aligns with the broader analyst consensus, as revealed by InvestingPro data, with analysts setting a high target of $109. The firm’s optimism is anchored in the company’s promising clinical data and strategic positioning in the oncology sector.
The CEO of Merus, Bill Lundberg, has expressed high confidence in petosemtamab, describing it as "the best oncology dataset I have ever had" in relation to its phase 1/2 data for 2L HNSCC monotherapy and 1L HNSCC combo. The data has gained further credibility with FDA validation through a Breakthrough Therapy Designation (BTD). According to InvestingPro analysis, the company maintains a "Fair" overall financial health score, suggesting stable operational foundations despite being in the development phase.
Stifel’s analysis suggests that Merus’s management team is confident in the company’s competitive edge and execution timelines. The forthcoming update on 1L HNSCC peto/pembro data is anticipated to shed light on the final Objective Response Rate (ORR), which is expected to align with the previous year’s results, as well as provide insights into Progression-Free Survival (PFS) and Overall Survival (OS) rates.
The significance of OS over PFS was emphasized, as PFS is not a primary endpoint in phase 3 trials. Merus’s phase 3 trials are progressing swiftly, and the company has reaffirmed the possibility of seeking accelerated approval based on interim ORR data.
Additionally, Stifel highlighted that certain aspects of Merus’s business are not fully appreciated by the market, such as the potential opportunities presented by KEYNOTE-689 and the lack of valuation attributed to the company’s colorectal cancer (CRC) research, with promising data expected in the second half of 2025. InvestingPro data reveals the company holds more cash than debt on its balance sheet and anticipates sales growth in the current year. For deeper insights into Merus’s financial health and growth prospects, investors can access the comprehensive Pro Research Report, available exclusively to InvestingPro subscribers.
In other recent news, Merus N.V. has seen notable developments concerning its lead drug candidate, petosemtamab. Citi has increased its price target for Merus to $97, maintaining a Buy rating following new trial data presented at the ESMO Asia conference, which showed promising results for petosemtamab monotherapy in head and neck squamous cell carcinoma (HNSCC). Meanwhile, BMO Capital Markets has raised its price target to $96, citing the narrowed timelines for clinical data releases as a positive factor. Piper Sandler has initiated coverage with an Overweight rating and a $84 price target, emphasizing the drug’s potential in combination therapies. Wells Fargo (NYSE:WFC) has also initiated coverage with an Overweight rating and a $91 price target, highlighting the untapped potential of petosemtamab in metastatic colorectal cancer (mCRC).
H.C. Wainwright maintains a Buy rating with an $85 target, focusing on the ongoing Phase 3 trials for petosemtamab. The analyst pointed out the significant progress in clinical development and upcoming data presentations that could confirm the drug’s efficacy. The recent data and analyst ratings reflect confidence in Merus’s pipeline and the potential of petosemtamab to address unmet needs in oncology. These developments underscore the company’s strategic positioning as it advances its clinical programs.
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