VSTM Stock Clocks Best Day In 11 Months After Positive Cancer Drug Trial Update And Multiple Price-Target Hikes

• Alliance Global on Thursday raised its price target on VSTM to $22 from $18 and maintained a Buy rating.
• RBC Capital analyst Leonid Timashev said that while VS-7375 tolerability is not as favorable as Revolution Medicines’ experimental drug Zoldonrasib, the overall profile remains acceptable. 
• BTIG said VS-7375 could rival Revolution Medicines’ approved drug Daraxonrasib in second-line metastatic pancreatic disease.

Shares of Verastem Oncology (VSTM) jumped 20% on Thursday, clocking its best day since Nov. 2025, as analysts lifted price targets following a positive update on the company’s experimental drug VS-7375 in second-line metastatic pancreatic ductal adenocarcinoma.

On Wednesday, Verastem said that in its ongoing early-stage TARGET-D 101 trial, VS-7375 produced a 50% confirmed overall response rate in second-line metastatic pancreatic ductal adenocarcinoma at the 900 mg daily dose, along with responses in lung and colorectal cancers and a manageable safety profile dominated by low-grade gastrointestinal side effects

Verastem also added that the company has aligned with the U.S. Food and Drug Administration on a late-stage path in first-line metastatic pancreatic cancer using chemotherapy-free regimens, with the study expected to open by year-end.

Wall Street Weighs In On VSTM

Alliance Global on Thursday subsequently raised its price target to $22 from $18 and maintained a Buy rating, describing the updated TARGET-D 101 data as showing a highly tolerable safety profile and efficacy that is in line with or better than other drugs in the same class and in development, potentially best-in-class.

RBC Capital analyst Leonid Timashev increased the target to $19 from $14 while keeping an Outperform rating, calling the drug clearly active with hints of best-in-class efficacy in pancreatic ductal adenocarcinoma. He noted that while tolerability is not as favorable as one competitor, Revolution Medicines’ experimental drug Zoldonrasib, the overall profile remains acceptable.

BTIG raised its target to $24 from $18 and kept a Buy rating, saying the detailed update across second-line pancreatic cancer, second-line non-small cell lung cancer, and third-line colorectal cancer points to class-leading efficacy that could rival Revolution Medicines’ approved drug Daraxonrasib in second-line metastatic pancreatic disease.

Jefferies analyst Faisal Khurshid raised the price target to $13 from $11 and maintained a Buy rating. Aligning on a favorable late-stage trial path, he added, positions Verastem only about seven months behind competitors Revolution Medicines and Incyte in the race to develop drugs within the same class.

CEO Change And Capital Raising

Verastem on Wednesday also priced a $250 million offering of common stock and pre-funded warrants at $8 per share to support VS-7375 development and general purposes, expected to close around October 15.

The company further announced a planned CEO transition, with longtime executive Daniel Paterson retiring effective January 1, 2027, and board member Michael P. Bailey succeeding him.

How Did VSTM Retail Traders React?

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

“The more I watch it, the more constructive it looks,” a Stocktwits user wrote about the stock.

Another user drew a parallel between VSTM’s current rally and Iovance Biotherapeutics Inc (IOVA) stock’s rally last month, which lasted for several days.

VSTM stock has gained 2o% year-to-date. 

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