Summit Therapeutics downgraded to Neutral from Buy at Citi

Citi downgraded Summit Therapeutics to Neutral from Buy with a price target of $23, up from $19. With the shares up 670% and now trading at a $16B market capitalization since May’s the HARMONi-2 headline, Summit has surpassed Citi’s prior $19 target, the analyst tells investors in a research note. The firm does not want investors to lose sight of its bull case of $42 per share and recognizes that a positive signal in HARMONi-2/3/6 or future “game-changing” randomized data beyond lung cancer “could shuttle the stock higher quickly.” However, Citi does not have much visibility on timing, especially beyond lung, and says Summit’s valuation is looking “fair for now.”