Summit Therapeutics stock reaffirmed Buy at UBS ahead of ESMO data

Investing.com - Summit Therapeutics plc (NASDAQ:SMMT) received a reaffirmed Buy rating and $30.00 price target from UBS on Friday. The stock, currently trading at $22.61, has shown strong momentum with analyst targets ranging from $11.87 to $48.76. According to InvestingPro analysis, the company maintains a FAIR financial health score.

UBS maintains its positive outlook on Summit ahead of the company’s detailed HARMONi-6 trial data presentation scheduled for October 19 at the European Society for Medical Oncology (ESMO) conference. With a market capitalization of $16.83 billion and notably contrarian market behavior (Beta -1.14), Summit has demonstrated strong returns over both short and long-term periods.

The firm’s analysis suggests ivonescimab plus chemotherapy could achieve a progression-free survival (PFS) hazard ratio between 0.62-0.69 versus the tislelizumab plus chemotherapy control arm, which would exceed the 0.7 benchmark considered clinically meaningful according to key opinion leaders consulted by UBS.

UBS also notes a strong correlation between progression-free survival and overall survival in immuno-oncology plus chemotherapy trials, expecting the 8.0-11.3 months median PFS to translate to positive median overall survival benefits.

The firm views the upcoming ESMO presentation as a key catalyst for Summit Therapeutics, suggesting positive data could drive meaningful upside for the stock.

In other recent news, Summit Therapeutics has been the focus of several analyst updates and clinical trial results. The company recently released longer-term follow-up data from a global trial of its investigational lung cancer therapy, ivonescimab, which did not confirm earlier positive results seen in China. This has raised concerns about the drug’s regulatory pathway, particularly due to the potential overall survival harm observed in North American and European patients. In response to these developments, Barclays initiated coverage on Summit Therapeutics with an Underweight rating, citing competitive concerns and a lengthy regulatory path for ivonescimab.

Conversely, H.C. Wainwright has reiterated its Buy rating and set a $50.00 price target, highlighting the drug’s clinical milestones and superior results in the China-based HARMONi-2 trial. JMP Securities also maintained its Market Outperform rating with a $40.00 price target, following Summit’s presentation of longer-term data from the Phase 3 HARMONi trial. The mixed analyst perspectives reflect the complexity and evolving nature of Summit’s clinical trial outcomes and market positioning. These updates provide investors with critical insights into the company’s current challenges and potential opportunities.

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