Merus N.V. PT Raised to $85 at H.C. Wainwright By Reuters

H.C. Wainwright analysts raised the price target on Merus N.V. (NASDAQ:) to $85.00 (from $65.00) while maintaining a Buy rating.

The analysts comment “Valuation and risks to reaching our price target. Given the recent ASCO update for petosemtamab, we are increasing our penetration assumptions for 1L HNSCC to better reflect the ultimate de-risking of the opportunity. Hence, our new price target of $85.0/share is based on an equally weighted composite of: (a) $90.41/share, as a 25x multiple of taxed and diluted FY34 EPS of $11.23, discounted back to FY24 at 12.0%; and (b) an NPV of $79.1/share (discounted cash flow analysis using a 12.0% discount rate and 2.0% growth rate, in line with the expected discount and growth parameters of an early development-stage biotechnology company). Risks to achieving our price target include regulatory, commercial, clinical development, manufacturing, financial, liability and intellectual property risks.”