On Thursday, Mizuho (NYSE:MFG) Securities sustained its Outperform rating on shares of Corvus Pharmaceuticals (NASDAQ:CRVS) with a price target of $12.00. The firm's analyst highlighted the first Phase 1 results for soquelitinib in atopic dermatitis (AtD), expressing optimism about the drug's efficacy and safety profile. The analyst noted that the data, which comes from initial dose cohorts, appears competitive compared to existing oral and injected AtD medications.
Despite the promising data, Corvus Pharmaceuticals' stock experienced a significant intra-day drop of 45%, which the Mizuho analyst views as an overreaction. The analyst's confidence is bolstered by positive feedback from key opinion leaders (KOLs) and the belief that soquelitinib already shows better safety and efficacy than current oral AtD drugs, which are associated with safety risks.
The analyst anticipates that upcoming data updates will further clarify soquelitinib's potential. This optimism is reflected in the maintained Outperform rating, suggesting that Mizuho Securities sees a positive trajectory for Corvus Pharmaceuticals' stock based on the drug's development progress.
Corvus Pharmaceuticals is currently engaged in Phase 3 trials for soquelitinib as a treatment for lymphoma, and the Phase 1 data for AtD represents a potential expansion into additional immune disease treatments. The analyst's outlook remains positive, expecting that future data will reinforce the drug's promise in the market.
The maintained $12.00 price target by Mizuho Securities indicates their expectation that Corvus Pharmaceuticals' share value will reach this level, despite the current market reaction. The analyst's comments underscore a belief in the drug's competitive edge and potential for approval and market penetration.
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