Summit Therapeutics Gets A $40 Price Target From Guggenheim: Analyst Says It Likes The Stock At $24, Just Like It Did At $3

The price target of $40 represents an upside of 70% from the stock’s closing price on Wednesday.

Summit Therapeutics (SMMT) shares were in the spotlight on Thursday after Guggenheim initiated coverage of the stock with a ‘Buy’ rating and a $40 price target.

The price target represents a 70% upside from the stock’s closing price on Wednesday. SMMT stock has had a good run over the past year, nearly doubling in value.

Guggenheim said that it liked Summit at $3 when the market was overlooking imminent data comparing progression-free survival with Summit’s Ivonescimab versus Merck's (MRK) blockbuster drug Pembrolizumab in lung cancer. Notably, the analyst said that they still like the stock at $24.

On Stocktwits, retail sentiment around SMMT stock fell from ‘bullish’ to ‘neutral’ territory over the past 24 hours,  while message volume stayed at ‘low’ levels.

A Stocktwits user said they see sustained growth potential for the stock.

Guggenheim stated that if Summit's two late-stage clinical trials, HARMONi-3 and HARMONi-7, evaluating Ivonescimab in non-small cell lung cancer (NSCLC) are successful on progression-free survival or overall survival endpoints in 2027-2028, it has high conviction that the stock still has multi-fold upside potential from today's near-$20 billion valuation.

While progression-free survival (PFS) is the length of time a patient with a disease, such as cancer, lives with the disease without it getting worse, or dies, overall survival (OS) is the total length of time a patient lives from the point of diagnosis or the start of treatment until death.

HARMONi-3 is intended to evaluate Ivonescimab combined with chemotherapy compared to Pembrolizumab combined with chemotherapy in patients with first-line metastatic, squamous and non-squamous NSCLC. HARMONi-7 is intended to evaluate Ivonescimab monotherapy compared to Pembrolizumab monotherapy in patients with first-line metastatic NSCLC whose tumors produce a high amount of the PD-L1 protein.

SMMT stock is up 32% this year and approximately 96% over the past 12 months. 

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