In a report released on December 11, Mara Goldstein from Mizuho Securities maintained a Buy rating on Erasca (ERAS – Research Report), with a price target of $7.00.
Mara Goldstein has given her Buy rating due to a combination of factors surrounding Erasca’s stock (ticker: ERAS). Firstly, the Fast Track Designation awarded to naporafenib in combination with trametinib by the FDA for NRAS mutated melanoma treatment is a significant endorsement. This accelerates the drug’s development and potential market entry, providing a clear signal of its clinical viability and the robustness of the SEACRAFT-2 trial design. The designation is seen as an incremental positive, highlighting the drug’s promise and increasing its visibility in the competitive landscape of melanoma treatments.
Further underpinning Goldstein’s recommendation is the potential for naporafenib to address a broader market, given its testing in Q61X mutation settings. The anticipation of initial data from an all-comers trial, expected in the first half of 2024, enhances the prospects for naporafenib by potentially expanding its addressable market. Additionally, the current valuation of Erasca’s shares, trading below the company’s cash level—which is estimated to be around $2.15 per share—suggests a significant undervaluation. Goldstein sees this as an opportunity for the company’s clinical progress to correct the share price valuation, making it an attractive buy for investors.
In another report released on November 28, H.C. Wainwright also reiterated a Buy rating on the stock with a $8.00 price target.
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Based on the recent corporate insider activity of 16 insiders, corporate insider sentiment is positive on the stock. This means that over the past quarter there has been an increase of insiders buying their shares of ERAS in relation to earlier this year.
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Erasca (ERAS) Company Description:
Erasca Inc is a clinical-stage precision oncology company singularly focused on discovering, developing, and commercializing therapies for patients with RAS/MAPK pathway-driven cancers. The company’s pipeline includes two clinical-stage programs (ERK and SHP2 inhibitors), two preclinical-stage programs (CNS-penetrant KRAS G12C and EGFR inhibitors), and seven discovery-stage programs targeting other key oncogenic drivers.
Read More on ERAS:
- Erasca receives FDA Fast Track Designation for naporafenib
- Erasca Granted FDA Fast Track Designation for Pan-RAF Inhibitor Naporafenib in Patients with Advanced NRAS-Mutated Melanoma
- Erasca price target lowered to $8 from $10 at H.C. Wainwright
- Erasca achieves key milestones for naporafenib, ERAS-801
- Erasca Achieves Key Milestones for Naporafenib and ERAS-801 Programs and Extends Cash Runway
