Arcus Biosciences Price Target Cut to $23 Over Welireg Concerns; Goldman Sachs Sees $28
Arcus Biosciences saw its price target cut to $23 from $30 after a downgrade over Welireg differentiation concerns and potential headwinds from ASCO-GU readouts. Goldman Sachs raised its price target to $28 and highlighted casdatifan’s Phase 1 response rates of 31% mono and 46% combo for advanced renal cell carcinoma.
1. Analyst Downgrade and Price Target Reduction
Wells Fargo lowered its rating to equal weight and cut its price target to $23 from $30, pointing to unclear differentiation for Welireg and potential negative impact from upcoming ASCO-GU readouts evaluating Welireg plus Keytruda.
2. Hold Rating Maintained at $26
Bank of America Securities reaffirmed its hold rating on Arcus Biosciences with a $26 price target, reflecting a cautious stance as investors await data from LITESPARK-001 and -002 trials.
3. Goldman Sachs Buy Initiation and Casdatifan Outlook
Goldman Sachs initiated coverage with a buy rating and set a $28 target, highlighting casdatifan as a potent HIF-2alpha inhibitor with Phase 1 overall response rates of 31% for monotherapy and 46% in combination in second-line clear cell renal cell carcinoma, estimating a 17.4K-patient US/EU market and $1.7 billion risk-adjusted peak sales.