Merus price target raised to $56 from $48 at Guggenheim

Guggenheim analyst Michael Schmidt raised the firm’s price target on Merus (MRUS) to $56 from $48 and keeps a Buy rating on the shares as the firm previews upcoming clinical data for petosemtamab, which is currently being evaluated in a Phase I/II study in combination with Merck’s (MRK) Keytruda as a first-line treatment for metastatic head and neck cancer patients, or HNSCC. Positive results from the Keytruda combination study could provide additional visibility into the probability-of-success of petosemtamab in first-line HNSCC, representing a larger worldwide peak sales opportunity for the product and “potentially a major source of upside,” the analyst tells investors.