Verastem's Shares Not Fully Valuing its Growth Potential, RBC Says

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Yesterday

Verastem's (VSTM) shares are not fully valuing its growth potential, considering a "major upcoming catalyst" and the A+F commercial franchise on track for profitability by year-end, RBC Capital Markets analysts said in a Friday note.

Analysts said that the company's 7375 mechanism has the potential to enable a better clinical profile, with potential across lines of therapy.

RBC said that the company's new launch strategy focusing on driving depth, earlier prescribing, and refills and durability appears to be working well.

Analysts said that Verastem shares do not fully reflect the value of the recent approval for Av-Fak in low-grade serous ovarian cancer.

RBC has an outperform speculative risk rating on the stock and a $14 price target.

Price: 7.65, Change: +0.10, Percent Change: +1.32

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