CRVS Stock Surges 10%, Hits 50-DMA For First Time In A Month – Here’s Why Goldman Sachs Sees A 166% Upside

• The brokerage said that Corvus’ current valuation does not fully reflect the potential of its oral therapy to treat atopic dermatitis.
• Early trial results for Soquelitinib showed that 75% of patients achieved at least a 75% improvement in their eczema, while 25% experienced improvements of 90% or more.
• Corvus is conducting a Phase 2 placebo-controlled trial.

Shares of Corvus Pharmaceuticals (CRVS) jumped nearly 12% on Friday, breaking above their 50-day moving average for the first time since March 13 after a bullish analyst call highlighted the potential of its lead oral drug for treating eczema.

Source: TradingView

Goldman Sachs initiated coverage of Corvus with a ‘Buy’ rating and $40 price target, according to The Fly. This represents a 138% upside from current levels and around 166% from Thursday’s closing price.

The brokerage sees an attractive entry point, citing the company’s “leading emerging” oral option in the large post-Dupixent atopic dermatitis market. Goldman Sachs added that Corvus’ current valuation does not fully reflect the potential of its differentiated and developing oral therapy.

Soquelitinib Trial Showed Strong Improvement

In January, Corvus reported positive results from a placebo-controlled study of Soquelitinib in patients with atopic dermatitis. All patients in the group completed 56 days of treatment, with baseline conditions similar to earlier groups, though their disease severity was higher.

The company said 75% of patients saw at least a 75% improvement in their eczema, while 25% achieved 90% or greater improvement. About a third of the patients were rated as having clear or almost clear skin after treatment.

“The results from cohort 4 increase our confidence that Soquelitinib could become a leading oral therapy for the treatment of atopic dermatitis,” Corvus CEO Richard A. Miller had said then.

Corvus is currently conducting a Phase 2 placebo-controlled trial to test Soquelitinib in about 200 patients with moderate-to-severe atopic dermatitis who did not respond to prior treatments. The study includes multiple dosing groups and a placebo, with a 12-week treatment period followed by a 90-day follow-up.

How Did Retail Traders React?

Retail sentiment for CRVS on Stocktwits turned ‘bullish’ from ‘bearish,’ accompanied by ‘high’ message volumes.

One user expects the stock to climb to $100 over the next 12-18 months, given the company’s pipeline.

Year-to-date, the stock has gained around 116%.

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