Verastem price target lowered to $18 from $34 at Truist

Truist lowered the firm’s price target on Verastem to $18 from $34 but keeps a Buy rating on the shares. Following the recent phase 2 data, the stock has been trading close to cash due to questions around total market opportunity for the company’s lead drug as well as concerns around its cash overhang, and in the near term, Verastem shares could be rangebound as investors wait for clarity on the path forward, the analyst tells investors in a research note. Longer term however, Truist sees multiple potential inflection points over next 12-18 months, including a potential accelerated approval and the drug’s favorable risk/benefit profile in an area with high unmet need.