- Mizuho initiated coverage on Verastem Inc (NASDAQ:VSTM) with a Neutral rating and a price target of $2.
- The analyst says it sees strong clinical rationale, but valuation expansion rests on the go-forward strategy in – Low-Grade Serous Ovarian Cancer (LGSOC) and clinical signals from the KRAS G12C programs.
- The analyst writes that the shares are underpriced relative to the LGSOC market (~$1.5 billion) but waiting for clarity on accelerated approval and confirmatory trial, which could be a catalyst for valuation expansion.
- Mizuho writes that VSTM shares are trading below what can be seen as the opportunity in LGSOC based on a multiple of peak revenue (less $100 million market cap versus peak revenue forecast of ~$800 million).
- The analyst writes that the RAMP-201 interim data confirmed that the activity of avutometinib + defactinib looks competitive with other MEK inhibitors used in the setting.
- Mizuho also writes that KRAS G12C combination programs offer upside as the market potential could be up to 2-3X LGSOC, but awaiting data – 2H23.
- Price Action: VSTM shares are down 9.92% at $0.41 on the last check Thursday.
EXCLUSIVE: Kartoon Studios Taps Legible for Publication and Distribution of Stan Lee Comics
Kartoon Studios, Inc (NYSE: TOON), the controlling partner of “Stan Lee Universe, LLC,” today announced plans for the launch of STAN LEE COMICS, a line of digital and print comic books based on never-before-released stories and characters created by Stan Lee.
