Corvus Pharmaceuticals (CRVS) stock remains "undervalued and compelling" compared with peers like Apogee Therapeutics (APGE), whose latest data on its experimental atopic dermatitis drug APG777 failed to impress, Mizuho Securities said in a note Tuesday.

Apogee released Monday 16-week phase 2 trial data for APG777, its injectable, long-acting anti-IL-13 antibody for atopic dermatitis. Although the drug met its main efficacy goal, the results did not stand out significantly when compared with existing treatments, according to Mizuho. This led to Apogee's stock dropping by 17% on the day, in contrast with a 2% decline for the broader biotech index, the firm said.

Mizuho said it continues to favor Corvus' investigational drug soquelitinib, given that it appears competitive in both efficacy and safety while offering the convenience of oral dosing. Soquelitinib is also potentially combinable with other agents and has a novel mechanism of action targeting interleukin-2-inducible T-cell kinase, according to the note.

Despite Apogee losing about $500 million in market cap Monday, the stock is still valued greater than Corvus. "Given this valuation disparity, and also given soquelitinib's broader potential in both cancer and other immune disease settings, we continue to find [Corvus] shares significantly undervalued," the firm said.

Mizuho maintained its outperform rating on Corvus stock.

Price: 37.21, Change: -2.03, Percent Change: -5.17