CTMX Stock Garners Price Target Revisions After Colorectal Cancer Trial Data: Jefferies Sees As Much As 230% Upside

• Guggenheim also raised its price target on CytomX Therapeutics to $15 from $10 and kept a ‘Buy’ rating on the shares.
• Jefferies sees as much as a $5 billion market opportunity for Varseta-M. 
• According to data from Koyfin, all the nine analysts covering CTMX rate it ‘Buy’ or higher.

Multiple analysts raised their price target on shares of CytomX Therapeutics Inc (CTMX) on Wednesday on the heels of the company announcing positive early-stage trial data from lead asset Varseta-M.

One of the analysts raised the price target on the stock to $18, representing a potential upside of about 230% from the stock’s last closing price on Tuesday.

Trial Data Stokes Optimism

Earlier this week, the company announced positive data for Varseta-M in late-line metastatic colorectal cancer. The company said about 32% of patients responded to the treatment at the higher dose and 20% at the lower dose, with the disease kept from worsening for a median of around 7 months in both groups. The drug helped control the cancer in more than 80% of patients, and most side effects were considered manageable, the company said.

CytomX said it plans to engage with the U.S. Food and Drug Administration (FDA) mid-year to align on a potential registrational study. The company is also testing Varseta-M in combination with Bevacizumab, a therapy that blocks the blood supply to tumors.

Multiple analysts hiked their price targets on the stock following the update, with Jefferies and Guggenheim being the latest to join the parade.

Fresh Analyst Take

Jefferies raised the firm's price target on CytomX Therapeutics to $16 from $8 and kept a ‘Buy’ rating on the shares following the "impressive" Phase 1 Varseta-M data update in late-line metastatic colorectal cancer (mCRC). The firm sees a buying opportunity with "a rare ADC asset" capable of generating about a $1 billion-plus opportunity in third-line and later mCRC alone, with potential to about $5 billion-plus as it moves into first and second-line, the analyst told investors.

Guggenheim also raised its price target on CytomX Therapeutics to $15 from $10 and kept a ‘Buy’ rating on the shares. The firm, which is updating its model and estimates following the company's recent disclosure, said the data for both the 8.6 and 10mg/kg dose levels exceeds the benchmarks for current standard of care options by "a wide margin," which justifies increasing its view of the odds of success to 60% from 30%, previously.

According to data from Koyfin, all the nine analysts covering CTMX rate it ‘Buy’ or higher. The average 12-month price target on the stock is $11.67, representing a potential upside of over 150% from current trading levels.

How Did Stocktwits Users React?

On Stocktwits, retail sentiment for CTMX stayed within the ‘bullish’ territory over the past 24 hours, while message volume remained at ‘extremely high’ levels.

CTMX has risen 671% over the past 12 months. 

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