Don’t Say Bye Bye to Cardiff Stock, Say Buy Buy: Analyst
Investors were evidently disappointed with Cardiff Oncology’s (CRDF) latest clinical trial update, sending shares down 37% in last two trading sessions.
The company presented data from its lead clinical program assessing onvansertib in combination with standard-of-care FOLFIRI/bevacizumab indicated for the treatment of KRAS-mutated metastatic colorectal cancer. Data from the study showed that 12 of 35 (34%) patients treated with the recommended Phase 2 dose (RP2D) attained a complete response (1 patient) or partial response (11 patients). The toxicity profile of the combination also appeared relatively tame with no major or unexpected toxicities ascribed to onvansertib.
The market reacted negatively, but Baird analyst Joel Beatty notes that while the RP2D group’s overall response rate of 34% was slightly below the July 2, 2021 cutoff of 42% (8/19), it is nevertheless still “well above” the historical rates of 5-13%.
Also, the fact 5 patients (10%) dropped out of the study to pursue potentially curative therapy is “incrementally positive,” considering that before exiting the study, a confirmed partial response was exhibited in three of them while two had stable disease.
But these are not the main reasons why Beatty sees the data in a favorable light.
“We view the update positively because the median PFS of 9.4 months announced today in 48 evaluable patients held steady from the previous update (which was also 9.4 months as of July 2, 2021, in 32 evaluable patients at that time) and remains better than the historical median PFS of 4.5-5.7 months in this second-line mCRC population,” the analyst explained.
As such, with a pivotal trial expected to kick off in mid-2022, Beatty is “favorable on the probability-of-success.”
So, the market throwing a hissy fit and tanking the share price coupled with an analyst’s bullish slant is a recipe for potential upside, which Beatty expects plenty of. The analyst reiterated an Outperform (i.e., Buy) rating along with a $19 price target. What’s in it for investors? One-year returns of a hefty 390%. (To watch Beatty’s track record, click here)
Beatty’s confident outlook is no anomaly. In fact, compared to some of his colleagues’ expectations, his projection is on the conservative side; according to the average price target, shares will soar by 413% over the next 12 months. Moreover, the analysts are unanimously positive on this name; based on Buys only – 5, in total – the stock boasts a Strong Buy consensus rating. (See CRDF stock forecast on TipRanks)
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Disclaimer: The opinions expressed in this article are solely those of the featured analyst. The content is intended to be used for informational purposes only. It is very important to do your own analysis before making any investment.
