Buy Rating Affirmed for Leap Therapeutics on Strong Trial Prospects and Solid Financials

Robert W. Baird analyst Joel Beatty maintained a Buy rating on Leap Therapeutics (LPTX – Research Report) on May 13 and set a price target of $9.00.

Joel Beatty has given his Buy rating due to a combination of factors, primarily the potential of Leap Therapeutics’ lead agent, DKN-01, which is currently in phase 2 trials for multiple types of cancer, including gastric and colorectal cancers. He believes that the upcoming top-line data from these trials could serve as significant catalysts for the company’s stock value. The first major catalyst is the expected results in 2H24 from the DisTinGuish Part C study for gastric/GEJ cancer, which completed enrollment earlier in the year. The company’s strong cash position, capable of funding operations into 2Q26, also contributes to the positive outlook.
Moreover, Leap Therapeutics has further strengthened its financial runway with a recent private placement, attracting Gilead Sciences as a substantial investor and adding a Gilead representative to Leap’s Scientific Advisory Board, suggesting a growing strategic relationship. Additionally, the company’s better-than-expected 1Q24 earnings report and lower R&D expenses are promising signs. These factors, along with the expanded patient enrollment in the colorectal cancer study and the addition of progression-free survival as a primary endpoint, underline the rationale behind Beatty’s Buy rating.

According to TipRanks, Beatty is a 5-star analyst with an average return of 10.8% and a 47.28% success rate. Beatty covers the Healthcare sector, focusing on stocks such as Nurix Therapeutics, Amylyx Pharmaceuticals Inc, and ACADIA Pharmaceuticals.

In another report released on May 14, H.C. Wainwright also maintained a Buy rating on the stock with a $5.50 price target.

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Leap Therapeutics (LPTX) Company Description:

Leap Therapeutics, Inc. is a clinical stage biopharmaceutical company, which engages in developing novel therapies designed to treat patients with cancer. Its clinical stage programs are DKN-01 and TRX518. The company was founded on January 3, 2011 and is headquartered in Cambridge, MA.