Revolution Medicines price target raised to $80 from $70 at Stifel

Stifel raised the firm’s price target on Revolution Medicines (RVMD) to $80 from $70 and keeps a Buy rating on the shares. The firm notes that today’s results didn’t show the expected 300mg RMC-6236 dose as being efficacious and tolerable with pembro, which is why Stifel thinks the stock is soft. But the data for 200mg outline solid efficacy and argue for an additive effect on top of pembro, and the firm thinks should beat 1L NSCLC SoC. The RMC/pembro datasets look benign from a liver tox perspective, though some may push back on the short follow-up time. However, Stifel is optimistic as we’ve historically seen liver tox emerge as an early event in other KRASi/pembro 1L NSCLC studies. At this valuation, the firm thinks investors are sensitive to downside risk, and are thus skeptical of data outside of expectations. While RMC-6236 was required to be dosed down in NSCLC, efficacy looks good, setting up Revolution to now pursue a large 1L NSCLC opportunity, Stifel says.