Merus (MRUS) delivered a "flawless victory" in its interim data of the mid-stage study of petosemtamab plus pembrolizumab in head and neck squamous cell carcinoma, Truist Securities said in a Thursday note.

The study's results showing a 79% overall survival rate at 12-month was "unquestionably stronger" than competing treatment of ficerafusp alfa with pembrolizumab, Truist analysts said.

"These data reinforce our view that Peto is best-in-class," they said. "We are encouraged by MRUS indicating that data from one or both Phase 3 programs could be reported in 2026."

Truist reiterated its buy rating with a price target of $88.

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