Cantor Fitzgerald believes the selloff is understandable, but feel it has been overdone. The firm maintains an Overweight rating and $25 price target on Corvus.
“While we understand where the disappointment stems from, we think the reaction in the share price is perhaps not fully reflective of what was presented at AACR. We think additional data releases (ASCO) could help to refocus investor,” analyst Mara Goldstein said.
Shares ran up nearly 50 percent earlier this year, believed to be due to increased interest in Adenosine A2A receptor as a potential checkpoint therapy, specifically how it pertains to CPI-444.
“We don’t think the CPI-444 data are bad, just perhaps below where expectations were trending ahead of the meeting,” Goldstein said.
In the interim data on 96 patients, the objective response rate was 38 percent, 56 percent of patients were resistant to treatment with PD-LI antibodies and had ORRs of 30 percent for monotherapy and 46 percent for combination.
“We yield that investors are going to need to some convince from this point. The data generated in cohorts that are intended for accelerated registration look interesting to us, and we think that additional data as ASCO on these cohorts could help reset expectations,” Goldstein said.
Corvus Pharmaceuticals closed down 2.5 percent at $10.10.
Latest Ratings for CRVS
|Apr 2016||BTIG Research||Initiates Coverage on||Buy|
|Apr 2016||Cantor Fitzgerald||Initiates Coverage on||Buy|
|Apr 2016||Guggenheim||Initiates Coverage on||Buy|
View More Analyst Ratings for CRVS
View the Latest Analyst Ratings
See more from Benzinga
- Teens Find 100-Year-Old Converse To Be Cooler Than Under Armour
- Why Netflix Shares Cannot Be Valued Using Traditional Metrics
- Key2Options: Allowing Users To Create And Analyze Favorable Trade Scenarios
© 2017 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.