On Tuesday, Corvus Pharmaceuticals (NASDAQ:CRVS) received a price target increase from Oppenheimer, a move that underscores the firm's positive outlook on the company. The price target was raised to $8.00 from the previous $7.00, while the Outperform rating was reaffirmed.
This adjustment follows Corvus Pharmaceuticals' recent announcement of its first-quarter results on Monday, which included a significant update on its clinical trials. The company's Phase 1b soquelitinib trial reported two new responses, increasing the overall response rate (ORR) to 39% with 9 out of 23 patients responding at the target dose. This news comes shortly after the company's announcement last week of a $30 million financing effort aimed at strengthening its balance sheet.
The pivotal study in relapsed or refractory peripheral T-cell lymphoma (rPTCL) is expected to commence in the next quarter. The combination of the cash on hand at the end of the first quarter and the proceeds from the recent financing brings the total to approximately $52 million. According to Oppenheimer, this amount is anticipated to be sufficient to sustain Corvus Pharmaceuticals' operations into late 2025.
The firm updated its model to reflect the actual first-quarter results and the impact of the recent financing. The revised model and the promising trial results have led to the decision to reiterate the Outperform rating and increase the price target. The new target represents a $1.00 increase from the previous target, signaling confidence in the company's future performance.
InvestingPro Insights
Following the positive assessment from Oppenheimer, real-time data from InvestingPro supports a nuanced view of Corvus Pharmaceuticals (NASDAQ:CRVS). The company's market capitalization stands at a modest $93.66 million, with a price-to-book ratio over the last twelve months as of Q4 2023 at 2.42, indicating that investors may find the stock reasonably valued in relation to its net assets. Moreover, Corvus has shown a significant return over the last week with a 23.23% increase, contributing to a high return over the last year of 59.17%. These metrics underscore the stock's recent performance and could be of interest to potential investors looking for momentum in their investments.
InvestingPro Tips reveal that while Corvus holds more cash than debt, which is a strong liquidity indicator, the company is quickly burning through cash and has not been profitable over the last twelve months. Additionally, analysts do not anticipate the company will be profitable this year, which aligns with the reported negative earnings per share (EPS) of -$0.56 for the same period. These insights may suggest caution for investors who prioritize financial stability and profitability in their investment decisions.
For those interested in a deeper dive into Corvus Pharmaceuticals' financial health and future prospects, InvestingPro offers additional analysis. There are 6 more InvestingPro Tips available, which could provide further clarity on the company's financial position and market potential. To access these insights, consider using the exclusive coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription.
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