Buy Rating on Oric Pharmaceuticals Amidst Strong Financials and Promising Clinical Pipeline

Oric Pharmaceuticals (ORIC – Research Report), the Healthcare sector company, was revisited by a Wall Street analyst today. Analyst Robert Burns from H.C. Wainwright reiterated a Buy rating on the stock and has a $21.00 price target.

Robert Burns has given his Buy rating due to a combination of factors including Oric Pharmaceuticals’ recent financial performance and promising clinical developments. In the first quarter of 2024, ORIC reported a net loss per share that was less than anticipated, a sign of financial resilience. Furthermore, the company concluded the quarter with a substantial cash reserve, anticipated to sustain operations well into late 2026. This financial stability is expected to allow Oric Pharmaceuticals to advance through several significant clinical data readouts without the immediate need for additional capital.
Additionally, Burns’s optimistic outlook is further bolstered by the upcoming catalysts in Oric Pharmaceuticals’ pipeline. The company is on the verge of delivering updates on key drug programs, including ORIC-944 for metastatic prostate cancer and ORIC-114 for non-small cell lung cancer (NSCLC). These updates are pivotal and could potentially enhance the company’s value. Burns’s valuation also incorporates a discounted cash flow analysis, reflecting probabilities of approval for the drug candidates, while acknowledging the inherent risks such as clinical setbacks or regulatory hurdles. Despite these risks, the projected milestones and the company’s financial status underpin the Buy recommendation with a price target of $21 per share.

In another report released yesterday, Oppenheimer also maintained a Buy rating on the stock with a $17.00 price target.

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Oric Pharmaceuticals (ORIC) Company Description:

ORIC Pharmaceuticals Inc is a clinical-stage biopharmaceutical company. It has a pipeline of therapies designed to counter resistance mechanisms in cancer by leveraging its expertise within three specific areas: hormone-dependent cancers, precision oncology, and key tumor dependencies. The company has product candidates namely, ORIC-101 and ORIC-533.