Erasca’s Promising Naporafenib Data and Financial Stability Merit a Buy Rating

Analyst Graig Suvannavejh from Mizuho Securities maintained a Buy rating on Erasca (ERAS – Research Report) and keeping the price target at $7.00.

Graig Suvannavejh has given his Buy rating due to a combination of factors surrounding Erasca’s recent developments and financial position. The first key consideration is the disclosure of promising overall survival data for Erasca’s lead asset, naporafenib, in treating NRAS-mutant melanoma. This data suggests that naporafenib could offer a substantial median overall survival benefit, which compares favorably to the current standard of care. Additionally, Erasca’s recent oversubscribed private placement has extended the company’s cash runway well into the second half of 2026, offering a more secure financial footing for ongoing operations and research.
Moreover, the R&D Day event highlighted consistent overall survival data across different dose levels of naporafenib, reinforcing the potential efficacy of the treatment. Erasca also introduced a new pan-KRAS program, signaling ongoing innovation and expansion of their research pipeline. The comparison of naporafenib’s median overall survival to benchmarks from specific studies indicates a clear advantage, with naporafenib’s results surpassing those of the current therapies referenced by management. These factors collectively underpin Suvannavejh’s confidence in the stock, warranting a Buy rating from his perspective.

In another report released on April 1, Goldman Sachs also maintained a Buy rating on the stock with a $7.00 price target.

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Erasca (ERAS) Company Description:

Erasca Inc is a clinical-stage precision oncology company singularly focused on discovering, developing, and commercializing therapies for patients with RAS/MAPK pathway-driven cancers. The company’s pipeline includes two clinical-stage programs (ERK and SHP2 inhibitors), two preclinical-stage programs (CNS-penetrant KRAS G12C and EGFR inhibitors), and seven discovery-stage programs targeting other key oncogenic drivers.