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Piper Sandler has maintained a positive stance on Revolution (NASDAQ: RVMD), reiterating an Overweight rating with a price target of $57.00.
The affirmation of the stock's rating follows recent updates from the company's Phase I trial concerning RMC-6236, a treatment under investigation for pancreatic ductal adenocarcinoma (PDAC).
The focus among investors has now turned to the upcoming fourth-quarter 2024 updates for RMC-6236 in non-small cell lung cancer (NSCLC). The forthcoming Phase I data is anticipated to provide an initial view on the progression-free survival (PFS) of patients treated with RMC-6236 in the second line setting (2L+) for NSCLC.
The analyst from Piper Sandler highlighted that a median PFS (mPFS) of 8 months or more in this Phase I trial would set RMC-6236 up for a strong showing against docetaxel in a future Phase III trial. Through various analyses, the firm conveyed confidence that RMC-6236 could achieve this benchmark, potentially positioning it to outperform the established chemotherapy drug in later-stage studies.
Revolution's stock rating and price target remain unchanged as the market anticipates the Phase I update in the fourth quarter of 2024. The company's progress in developing treatments for NSCLC continues to be a point of interest for investors and analysts alike.
In other recent news, Revolution Medicines reported an earnings per share (EPS) loss of $0.81, aligning closely with the consensus estimate of a $0.77 loss. The company anticipates a net loss between $560 million and $600 million for the full year 2024, an increase from previous estimates.
The change is attributed to the acceleration of the Phase 2 trial for pancreatic ductal adenocarcinoma (PDAC), commercial supply scaling, and the exploration of earlier lines of treatment for PDAC.
Needham maintained a Buy rating on Revolution shares, adjusting the price target to $61.00. This comes in anticipation of significant data readouts expected by the end of 2024. Analysts from Piper Sandler and TD Cowen also maintained their Overweight and Buy ratings respectively, underpinned by the potential of Revolution's drug candidate, RMC-6236, in treating PDAC with G12X mutations.
Several firms, including H.C. Wainwright, JPMorgan, Oppenheimer, BofA Securities, Jefferies, and Stifel, have revised their price targets for Revolution following promising results from RMC-6236's treatment of PDAC. The drug demonstrated notably higher disease control rates and a longer duration of clinical benefit compared to other treatments.
InvestingPro Insights
Revolution Medicines (NASDAQ:RVMD) has shown impressive market performance, with InvestingPro data revealing a striking 93.62% price total return over the past year. This strong momentum is further evidenced by the stock trading near its 52-week high, at 98.98% of that peak. These metrics align with the positive outlook from Piper Sandler and the anticipation surrounding the company's upcoming clinical trial results.
InvestingPro Tips highlight that Revolution Medicines holds more cash than debt on its balance sheet, which could provide financial flexibility as the company advances its clinical programs, including RMC-6236. However, it's noted that the company is not profitable over the last twelve months, which is common for biotech firms in the development stage.
For investors seeking a deeper understanding of Revolution Medicines' financial health and market position, InvestingPro offers 11 additional tips. These insights could be particularly valuable as the market awaits the critical fourth-quarter 2024 updates on RMC-6236 in non-small cell lung cancer.
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