Analyst Kelly Shi from Jefferies maintained a Buy rating on Summit Therapeutics (SMMT – Research Report) and keeping the price target at $31.00.
Kelly Shi has given his Buy rating due to a combination of factors surrounding Summit Therapeutics’ HARMONi trial. The trial, which focuses on patients with EGFRm NSCLC, shows promising potential with its design targeting two primary endpoints: progression-free survival (PFS) and overall survival (OS). The data from the HARMONi-A China trial, which forms a significant part of the global trial, has already demonstrated positive outcomes, particularly in PFS, supporting the potential for similar success in the ex-China cohort.
Shi’s analysis suggests that the ex-China patients could achieve comparable results to the China patients, with expected hazard ratios for PFS and OS being around 0.5 and 0.8, respectively. The anticipated timeline for reaching key PFS and OS events further supports this optimistic outlook. Additionally, historical data indicates that global trials often perform slightly better than their China counterparts, bolstering confidence in the trial’s success and underpinning the Buy rating.
In another report released on February 28, Goldman Sachs also initiated coverage with a Buy rating on the stock with a $42.00 price target.