AI underweights weigh on large-cap funds performance says Goldman
Investing.com - Summit Therapeutics plc (NASDAQ:SMMT), currently trading at $21.28 with a market capitalization of $15.8 billion, maintained its Buy rating and $44.00 price target at H.C. Wainwright, following the company’s collaboration agreement with Revolution Medicines (NASDAQ:RVMD). According to InvestingPro, analysts have recently revised their earnings expectations upward for the upcoming period.
The agreement focuses on developing combinations of Revolution’s clinical-stage RAS(ON) inhibitors with Summit’s ivonescimab, a PD-1 x VEGF bispecific antibody. The collaboration will explore combinations using Revolution’s multi-selective inhibitor daraxonrasib, G12D-selective inhibitor zoldonrasib, and G12C-selective inhibitor elironrasib. Summit enters this partnership with a FAIR financial health score according to InvestingPro, which offers comprehensive analysis of 1,400+ US stocks through its Pro Research Reports.
The partnership will target three priority tumor types: RAS mutant non-small cell lung cancer, pancreatic ductal adenocarcinoma, and colorectal cancer. Under the terms, Summit will supply ivonescimab for clinical research while Revolution will sponsor the studies, with each company retaining commercial rights to their respective compounds.
H.C. Wainwright views the increasing business development interest in Summit as encouraging, following the Pfizer (NYSE:PFE) collaboration announced earlier this year. The firm noted that clinical success with the RAS(ON) and PD-1 x VEGF combination therapy could significantly enhance investor value. The stock has demonstrated strong momentum with a 161% return over the past year, and notably tends to move counter to market trends with a beta of -1.05.
The analyst highlighted growing investor interest in potential large-scale business development opportunities that could monetize ivonescimab’s potential in oncology, particularly given recent attention to acquisitions in the PD-1/L1 x VEGF space.
In other recent news, Summit Therapeutics has been the focus of multiple analyst ratings and collaborations. UBS initiated a Buy rating for Summit Therapeutics, highlighting the potential of its lead cancer drug, ivonescimab, with a price target of $30.00. The firm expects the drug to become a standard treatment for non-small cell lung cancer (NSCLC), projecting peak sales to exceed $7 billion. Clear Street also initiated a Buy rating with the same price target, following Summit’s collaboration with Revolution Medicines to explore ivonescimab in combination with RAS(ON) inhibitors. Conversely, Leerink Partners initiated coverage with an Underperform rating, setting a $12.00 price target, expressing skepticism about ivonescimab’s market potential. H.C. Wainwright maintained its Buy rating with a $44.00 price target, citing ivonescimab’s potential to outperform Merck (NSE:PROR)’s KEYTRUDA in specific settings. Additionally, Cantor Fitzgerald reiterated an Overweight rating, despite concerns about the statistical significance of Summit’s HARMONi data and its impact on FDA approval. These developments reflect diverse analyst opinions on Summit Therapeutics’ prospects.
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