Verastem (VSTM) PT Lowered to $7 at Mizuho

Mizuho analyst Graig Suvannavejh lowered the price target on Verastem (NASDAQ: VSTM) to $7.00 (from $36.00) while maintaining a Outperform rating.

The analyst comments "Ahead of 2Q results (expected in mid-August), we've undertaken a significant review of our model, with our 12-month PT now moving to $7 from $36. Key changes include: (1) adoption of a DCF-based valuation methodology; (2) extension of our estimates to 2037 (vs. 2033 previously); (3) lowering our revenue assumptions for lead asset avutometinib plus defactinib/A+D in low grade serous ovarian cancer/LGSOC to reflect a reduced addressable market opportunity (i.e., in KRAS-mutant patients only); and (4) incorporation of a $55mn financing announced earlier this week (LINK). Ahead of multiple datasets expected in 2H24, including (1) mature data expected from RAMP 201 in LGSOC at a medical conference, and (2) additional data disclosures from RAMP 203 and RAMP 204 in non-small cell lung cancer/NSCLC, and seeing >100% upside potential vs. current levels, we stay at Outperform on VSTM."

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