Stifel reiterates Buy rating on Bicara Therapeutics stock

On Monday, Stifel analysts reaffirmed their Buy rating on Bicara Therapeutics Inc (NASDAQ: BCAX), maintaining a price target of $48.00 - representing a potential 419% upside from the current price of $9.25. According to InvestingPro data, the company maintains a strong balance sheet, holding more cash than debt, though it’s currently experiencing rapid cash burn.

The analysts highlighted the promising results from the Phase 1b dose-expansion trial. This trial evaluates the combination of ficerafusp and pembrolizumab in patients with HPV-negative first-line recurrent/metastatic squamous cell carcinoma of the head and neck (SCCHN). The results show a notable correlation between the depth of responses mediated by ficerafusp and improved longer-term clinical outcomes, such as duration of response (DOR), progression-free survival (PFS), and overall survival (OS). With the next earnings report due on June 11, investors will be closely monitoring the trial’s progress and cash utilization rate.

Stifel analysts noted that the 12-month landmark OS differences are influencing the competitive narrative between Bicara Therapeutics and Merus (NASDAQ:MRUS). Despite the limited patient numbers and incomplete baseline patient information, the analysts believe these factors will not determine the long-term success of either drug.

Conversations with key opinion leaders at the recent ASCO meeting echoed the sentiment that Bicara’s strategy for Phase 2 and Phase 3 development is sound. The company is conducting a robustly powered trial targeting a biologically distinct subtype amenable to EGFR/TGF-beta inhibition, which comprises approximately 80% of the first-line SCCHN total addressable market.

Stifel analysts concluded that the current valuation of Bicara Therapeutics stock does not fully reflect the favorable risk/reward profile established by the company’s development approach. This view aligns with InvestingPro analysis, which suggests the stock is currently undervalued. Discover more insights and 8 additional ProTips about BCAX’s financial health and market position with an InvestingPro subscription.

In other recent news, Bicara Therapeutics Inc. has been the focus of several analyst reports and clinical data updates. The company released interim data from its Phase 1/1b trial of ficerafusp alfa in combination with pembrolizumab, showing a 64% objective response rate in HPV-negative patients, with a median progression-free survival of 9.8 months. Despite these findings, investor reactions were mixed, leading to a significant drop in the company’s stock. Stifel analysts maintained their Buy rating and set a price target of $48, citing promising data and advising investors to consider buying on price dips. Cantor Fitzgerald also reiterated an Overweight rating, emphasizing ficerafusp’s potential in achieving significant tumor shrinkage compared to competitor MRUS. TD Cowen expressed confidence in Bicara, maintaining a Buy rating and highlighting the company’s attractive valuation relative to peers like Merus N.V. The upcoming American Society of Clinical Oncology (ASCO) meeting is a focal point, where Bicara will present more detailed data, which could further influence investor sentiment.

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