In a report released today, Alec Stranahan from Bank of America Securities reiterated a Buy rating on Erasca (ERAS – Research Report), with a price target of $5.00.
Alec Stranahan has given his Buy rating due to a combination of factors including promising clinical developments and strategic asset acquisitions. The upcoming phase 3 SEACRAFT-2 readouts for naporafenib, aimed at treating melanoma with NRAS mutations, are expected to drive near-term sentiment positively. Additionally, the acquisition of molecular glue assets, ERAS-0015 and ERAS-4001, for solid tumor treatment is seen as a significant growth opportunity, with initial data anticipated in 2026.
Stranahan’s confidence is further bolstered by naporafenib’s competitive clinical profile, demonstrating a higher overall response rate and survival benefit compared to standard treatments. The preclinical data for the molecular glue assets has also shown impressive potency and potential synergy with immunotherapies, although clinical proof-of-concept is awaited. These factors, combined with a favorable safety profile and strategic positioning, underpin the reiterated Buy rating and a price objective of $5.
According to TipRanks, Stranahan is an analyst with an average return of -10.0% and a 39.18% success rate. Stranahan covers the Healthcare sector, focusing on stocks such as TG Therapeutics, RegenXBio, and HUTCHMED.
In another report released on March 6, Morgan Stanley also initiated coverage with a Buy rating on the stock with a $4.00 price target.