Summit draws Neutral view on risk/reward setup as Piper initiates biotech cancer names

[Wall Street sign in Lower Manhattan, NYC]
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Piper Sandler launched the coverage of a raft of cancer-focused biotechs with bullish views on Monday while issuing a Neutral recommendation on Summit Therapeutics (NASDAQ:SMMT [https://seekingalpha.com/symbol/SMMT]), citing an unfavorable risk-reward setup.

“In lieu of near-term M&A, we see downside risk,” analyst Kelsey Goodwin wrote on Summit (NASDAQ:SMMT [https://seekingalpha.com/symbol/SMMT]), whose lead candidate developed with Chinese biotech Akeso (OTCPK:AKESF [https://seekingalpha.com/symbol/AKESF]) has already outperformed Merck’s (MRK [https://seekingalpha.com/symbol/MRK]) cancer blockbuster Keytruda in a late-stage trial. [https://seekingalpha.com/news/4111700-summit-stock-gains-lead-asset-beats-keytruda]

“Investor expectations have risen following compelling clinical data from ivonescimab but appear too high, in our view, driven by the perception that SMMT has “the next Keytruda” and is an M&A candidate due to the well-credentialed management,” she added. Goodwin issued a $21 per share target on SMMT, seeking a “better entry point” after the stock climbed ~43% this year.

Meanwhile, shares of Revolution Medicines (NASDAQ:RVMD [https://seekingalpha.com/symbol/RVMD]) spiked on Tuesday after Piper issued an Overweight rating and a $75 per share target on the stock.“Despite a broad development program with multiple potentially best-in-class assets, RVMD value is driven primarily by investor confidence in daraxonrasib’s 2L mPDAC opportunity, given highly encouraging data presented to date,” the analyst wrote.

Daraxonrasib, Revolution’s (NASDAQ:RVMD [https://seekingalpha.com/symbol/RVMD]) lead asset, is currently undergoing late-stage development against pancreatic ductal adenocarcinoma (PDAC) and non-small cell lung cancer (NSCLC).

“We think investors are starting to regain confidence in the synthetic lethality space and see potential for TNGX’s PRMT5-inhibitor following the positive competitor readthrough presented at ASCO earlier this year,” Goodwin wrote on Tango Therapeutics’ (NASDAQ:TNGX [https://seekingalpha.com/symbol/TNGX]) lead asset TNG462.

While Tango’s (NASDAQ:TNGX [https://seekingalpha.com/symbol/TNGX]) data for TNG462 so far has been early and mainly focused on cholangiocarcinoma, Goodwin, with an Overweight rating and $11 per share target on TNGX, cited potential in its additional readouts in pancreatic cancer and NSCLC expected in H2 2025.

The analyst issued an Overweight rating and a $36 per share target on UroGen Pharma (NASDAQ:URGN [https://seekingalpha.com/symbol/URGN]), noting that despite a volatile setup for the stock this year, investors are becoming increasingly confident in the market launch of its bladder cancer drug, Zusduri.

"We think early commercial launch datapoints combined with updates from the Ph. III UTOPIA of UGN-103 will drive meaningful upside to URGN shares over the next 12–18 months," she added.

Day One Biopharmaceuticals (DAWN [https://seekingalpha.com/symbol/DAWN]), CG Oncology (CGON [https://seekingalpha.com/symbol/CGON]), Bicara Therapeutics (BCAX [https://seekingalpha.com/symbol/BCAX]), Janux Therapeutics (JANX [https://seekingalpha.com/symbol/JANX]), and Nuvalent (NUVL [https://seekingalpha.com/symbol/NUVL]) were the other oncology names to receive bullish views from Piper on Monday. [https://seekingalpha.com/news/4486998-piper-sandler-initiates-coverage-of-oncology-companies]

MORE ON SUMMIT THERAPEUTICS, UROGEN PHARMA, ETC.

* UroGen Pharma: Targeting Profits In 2027 [https://seekingalpha.com/article/4814605-urogen-pharma-targeting-profits-in-2027]
* UroGen Pharma Ltd. 2025 Q2 - Results - Earnings Call Presentation [https://seekingalpha.com/article/4811691-urogen-pharma-ltd-2025-q2-results-earnings-call-presentation]
* UroGen Pharma Ltd. (URGN) Q2 2025 Earnings Call Transcript [https://seekingalpha.com/article/4811690-urogen-pharma-ltd-urgn-q2-2025-earnings-call-transcript]
* Revolution Medicines outlines $1.03B–$1.09B net loss guidance for 2025 amid expanded global RAS portfolio strategy [https://seekingalpha.com/news/4481073-revolution-medicines-outlines-1_03b-1_09b-net-loss-guidance-for-2025-amid-expanded-global-ras]
* Revolution Medicines GAAP EPS of -$1.31 misses by $0.29 [https://seekingalpha.com/news/4480632-revolution-medicines-gaap-eps-of--131-misses-by-029]