Cantor Fitzgerald Starts ORIC Pharamceuticals (ORIC) at Overweight, 'offers attractive risk/reward'

Cantor Fitzgerald analyst Prakhar Agrawal initiates coverage on ORIC Pharamceuticals (NASDAQ: ORIC) with a Overweight rating.

The analyst comments "Investment Summary: We are initiating coverage of ORIC Pharmaceuticals (“ORIC”) with an Overweight rating. ORIC is a clinical-stage oncology-focused biotech company. Our bullish view on ORIC is driven by: #1) ORIC-114 (oral EGFR/HER2 exon 20 inhibitor) - differentiated brain penetrant exon 20 (Ex20) inhibitor in lung cancer that we believe has a high probability of emerging as a best-in-class drug and entirely supports current valuation. #2) ORIC-944 (oral PRC2 inhibitor) - offers attractive risk/reward in the large prostate cancer market, with our optimism stemming from PFE data for a similar working drug. Positive P2 data for PFE's EZH2 drug in mid-2024 will derisk the mechanism in prostate cancer and could result in substantial upside for ORIC. Stock setup: ORIC stock outperformance in the past few months likely due to: 1) Ex20 inhibitor space getting less competitive than initially perceived, 2) ArriVent (AVBP, NC) IPO provided an attractive valuation comp for ORIC-114 in Ex20 lung , 3) PFE's (OW, covered by L. Chen) tone remains positive on their closely-watched prostate cancer drug (EZH2 inhibitor) that will have important implications for ORIC-944 due to similarities in mechanism."

For an analyst ratings summary and ratings history on ORIC Pharamceuticals click here. For more ratings news on ORIC Pharamceuticals click here.

Shares of ORIC Pharamceuticals closed at $10.12 yesterday.

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