AI underweights weigh on large-cap funds performance says Goldman
Investing.com - Piper Sandler initiated coverage on Summit Therapeutics plc (NASDAQ:SMMT) with a Neutral rating and a $21.00 price target on Tuesday. According to InvestingPro data, the company, currently valued at approximately $20 billion, has seen its stock surge over 114% in the past year, though analysis suggests the stock is currently trading above its Fair Value.
The research firm cited several concerns about investor expectations for Summit’s cancer drug ivonescimab, which it believes have risen too high following compelling clinical data.
Piper Sandler expressed uncertainty about the reproducibility of data from China and noted the lack of overall survival benefit demonstrated to date for the drug candidate.
The firm also highlighted concerns about the potential "unfilable nature" of the HARMONi study based on FDA guidance to Summit, as well as the company’s insufficient cash to finance a comprehensive development plan without a partner.
Summit Therapeutics, led by former Pharmacyclics executives, faces high merger and acquisition expectations while large pharmaceutical companies continue partnering on competing PD(L)1xVEGF assets, according to Piper Sandler’s analysis.
In other recent news, Summit Therapeutics has been the focus of several analyst updates and corporate developments. The company recently reported its second-quarter 2025 earnings and announced the enrollment of patients in its HARMONi-3 and HARMONi-7 Phase 3 clinical trials. JMP Securities reiterated its Market Outperform rating with a $40 price target following these updates. Additionally, Evercore ISI raised its price target for Summit to $34, maintaining an Outperform rating, as the company shifted from quarterly conference calls to standard press releases and 10-Q filings. Cantor Fitzgerald also maintained its Overweight rating, noting a change in Summit’s management approach towards potential partnerships. Meanwhile, H.C. Wainwright kept its Buy rating and $44 price target after Summit’s collaboration with Revolution Medicines, which aims to develop new cancer treatments. UBS initiated coverage of Summit with a Buy rating and a $30 price target, highlighting the potential of its lead cancer drug candidate, ivonescimab, in treating non-small cell lung cancer. These developments reflect ongoing interest and optimism from various analysts regarding Summit Therapeutics’ future prospects.
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