Mirati Therapeutics (MRTX) PT Lowered to $105 at Stifel, Buy Rating Maintained, "Negative After-Market Move is Overdone"

Stifel analyst Ben Burnett lowered the price target on Mirati Therapeutics (NASDAQ: MRTX) to $105.00 (from $133.00) while maintaining a Buy rating.

The analyst comments: "We think the negative after-market move is overdone and that the phase-2, 2L KRAS-G12C NSCLC ASCO abstract more or less confirms the similarity of full dose Lumakras and adagrasib monotherapy (especially mOS and mPFS). We believe the stock is down on a lower-than-expected mDOR (8.5 months vs Lumakras’ 12.5 months), which we think introduces some accelerated approval risk. However, we believe the frontline NSCLC setting offers a much bigger commercial opportunity, and that the ultimate winner will be dictated by combinability with pembro. In our view, MRTX is more likely to succeed here than AMGN (deep dive here). So, while the stock is off on a negative second-line update, we recommend focusing on what we think is a more important frontline catalyst later in the year. Separately, CNS activity in patients with stable brain mets bodes well for the active brain met readout expected June 6th."

By Vlad Schepkov

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