William Blair analyst Andy Hsieh has maintained their bullish stance on ELEV stock, giving a Buy rating on March 10.
Andy Hsieh has given his Buy rating due to a combination of factors surrounding Elevation Oncology’s strategic decisions and promising developments. The company has decided to discontinue EO-3021, a move seen as financially prudent, allowing them to focus resources on EO-1022, an antibody-drug conjugate targeting HER3. This decision was made after observing a lower-than-expected response rate in EO-3021’s Phase I trial, prompting a shift to EO-1022, which shows potential based on preclinical data and upcoming presentations at significant industry conferences.
Furthermore, the HER3 target for EO-1022 is considered de-risked due to the success of similar treatments in other cancers, suggesting a large total addressable market. The use of Synaffix’s advanced conjugation technology is also a positive factor, as it ensures a consistent drug-to-antibody ratio, which is crucial for the treatment’s efficacy. These strategic moves, alongside the company’s extended cash runway, underpin Hsieh’s optimistic outlook and Buy rating for Elevation Oncology.
In another report released on March 10, JMP Securities also maintained a Buy rating on the stock with a $7.00 price target.
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