RBC ups Pyxis Oncology target, says buy shares on selloff

RBC Capital raised the firm’s price target on Pyxis Oncology (PYXS) to $10 from $7 and keeps an Outperform rating on the shares. The initial clinical data for PYX-201 “delivered convincing efficacy data,” with 12 responses across six different tumor types, and high potency in head and neck squamous cell carcinoma, the analyst tells investors in a research note. The firm says that while concerns on safety may be weighing on Pyxis shares, the totality of the profile suggests a drug that can be well tolerated, with no related Grade 5 events, and few toxicities that are the hallmark of other antibody-drug conjugates. RBC thinks PYX-201 has demonstrated enough to support a path forward in multiple high value indications. It recommends buying the stock on weakness.