Summit Therapeutics stock holds $40 target at Citizens JMP

Published 28/04/2025, 11:28
Summit Therapeutics stock holds $40 target at Citizens JMP

On Monday, Summit Therapeutics plc (NASDAQ:SMMT) maintained its Market Outperform rating and a price target of $40.00, as per Citizens JMP. The firm’s stance comes after a significant drop in the company’s stock value last Friday, when trading was halted due to a sharp ~37% decline. Despite this setback, InvestingPro data shows the stock has delivered an impressive 507.9% return over the past year, with current market capitalization at $17.31 billion. This downturn equated to an approximate $8 billion loss in market capitalization, triggered by the approval of Ivonescimab (Ivo) in China as a monotherapy treatment for first-line non-small cell lung cancer (NSCLC) with a TPS (tumor proportion score) greater than 1%.

The approval was grounded on Phase 3 HARMONi-2 study data, which demonstrated a 49% reduction in the risk of disease progression when compared to pembrolizumab, with median progression-free survival (PFS) of 11.14 months versus 5.8 months. Although the overall survival (OS) data has reached 39% maturity, with 151 deaths out of 398 patients, the interim analysis did not achieve statistical significance for OS, having a hazard ratio (HR) of 0.777. This was expected, considering the stringent alpha spend of 0.0001 used for the analysis.

The firm highlighted the HARMONi-6 top-line data and anticipates further updates from the first U.S./Global trial (HARMONi) by mid-2025. Additionally, more mature HARMONi-2 OS data is expected by the end of 2025. The ongoing multiple Phase 3 trials, a capable leadership team, and a robust cash position of $412 million were cited as reasons for the positive outlook. InvestingPro data confirms the company’s strong liquidity position with a current ratio of 10.15, indicating ample resources to fund its clinical programs. Citizens JMP sees the recent sell-off as an opportunity for investors to buy into the company. According to InvestingPro, analysts maintain a strong bullish consensus with price targets ranging from $30.01 to $44.11. Notably, the stock tends to move opposite to the market with a beta of -0.46, potentially offering portfolio diversification benefits. For deeper insights into SMMT’s valuation and 12 additional ProTips, explore the comprehensive Pro Research Report available on InvestingPro.

In other recent news, Summit Therapeutics has garnered attention following several key developments. The company announced that its partner, Akeso, received approval from China’s National Medical (TASE:BLWV) Products Administration for ivonescimab, a monotherapy for advanced non-small cell lung cancer (NSCLC). This approval came after interim analysis from the HARMONi-2 Phase III trial in China, which suggested a 22% reduction in the risk of death compared to the existing treatment, pembrolizumab. Despite this, the market responded cautiously, reflecting uncertainty over the preliminary nature of the data.

Analyst firms have weighed in on Summit’s prospects, with H.C. Wainwright maintaining a Buy rating and a $44.00 price target, citing promising results from the HARMONi-6 trial. Meanwhile, Cantor Fitzgerald reiterated an Overweight rating, highlighting ivonescimab’s potential to become a new standard in NSCLC treatment. JMP Securities also retained a Market Outperform rating with a $32.00 price target, anticipating that positive outcomes from upcoming trials could significantly impact Summit’s stock value.

Summit is actively pursuing further clinical development of ivonescimab, with multiple Phase III trials ongoing. The company’s global HARMONi-7 study is currently enrolling patients, aiming to compare ivonescimab to pembrolizumab with registration intentions in the United States and other regions. Investors are closely watching for upcoming trial results, which could provide further clarity on ivonescimab’s efficacy and market potential.

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

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