Erasca (NASDAQ:ERAS) Given New $18.00 Price Target at Bank of America

Key Points

• Bank of America raised its price target on Erasca from $16 to $18 while keeping a neutral rating, implying a slight downside from the prior close.
• Analyst sentiment is mixed overall: Erasca has a Moderate Buy consensus with a $20.30 average target, but recent calls range from sell to buy.
• The stock has been volatile, recently trading at $19.55 after a sharp move, while the company also faces headline risks from weak earnings, litigation, and other legal claims.

Erasca (NASDAQ:ERAS - Get Free Report) had its price target boosted by investment analysts at Bank of America from $16.00 to $18.00 in a research report issued on Tuesday,Benzinga reports. The firm presently has a "neutral" rating on the stock. Bank of America's target price would indicate a potential downside of 7.95% from the stock's previous close.

A number of other research firms also recently weighed in on ERAS. Weiss Ratings restated a "sell (d-)" rating on shares of Erasca in a research report on Thursday, June 11th. Wolfe Research set a $16.00 price objective on Erasca in a research report on Thursday, June 4th. Stifel Nicolaus boosted their price objective on Erasca from $20.00 to $30.00 and gave the stock a "buy" rating in a report on Monday, April 27th. Mizuho cut their target price on shares of Erasca from $28.00 to $26.00 and set an "outperform" rating on the stock in a research report on Tuesday, May 12th. Finally, HC Wainwright reaffirmed a "buy" rating on shares of Erasca in a research note on Tuesday. Seven analysts have rated the stock with a Buy rating, two have issued a Hold rating and one has given a Sell rating to the stock. Based on data from MarketBeat, the stock presently has a consensus rating of "Moderate Buy" and a consensus price target of $20.30.

Erasca Stock Performance

Shares of NASDAQ ERAS traded up $1.66 during mid-day trading on Tuesday, hitting $19.55. 1,962,112 shares of the stock were exchanged, compared to its average volume of 6,555,927. Erasca has a twelve month low of $1.33 and a twelve month high of $24.28. The stock's fifty day simple moving average is $13.80 and its two-hundred day simple moving average is $12.98. The company has a market cap of $6.08 billion, a P/E ratio of -20.97 and a beta of 0.66.

Erasca (NASDAQ:ERAS - Get Free Report) last announced its earnings results on Monday, May 11th. The company reported ($0.60) EPS for the quarter, missing the consensus estimate of ($0.12) by ($0.48). As a group, equities research analysts predict that Erasca will post -0.55 earnings per share for the current fiscal year.

Hedge Funds Weigh In On Erasca

A number of hedge funds and other institutional investors have recently added to or reduced their stakes in the stock. Spruce Street Capital LP acquired a new position in shares of Erasca during the 4th quarter worth about $14,469,000. Janus Henderson Group PLC bought a new position in Erasca during the 1st quarter worth approximately $59,988,000. Commodore Capital LP bought a new position in Erasca during the 1st quarter worth approximately $51,372,000. Vivo Capital LLC grew its holdings in Erasca by 31.0% during the first quarter. Vivo Capital LLC now owns 12,151,480 shares of the company's stock valued at $196,611,000 after purchasing an additional 2,878,052 shares during the period. Finally, Siren L.L.C. grew its holdings in Erasca by 28.4% during the first quarter. Siren L.L.C. now owns 11,244,246 shares of the company's stock valued at $181,932,000 after purchasing an additional 2,486,997 shares during the period. Institutional investors own 67.78% of the company's stock.

Key Erasca News

Here are the key news stories impacting Erasca this week:

• Positive Sentiment: Erasca released updated preliminary Phase 1 data for its pan-RAS molecular glue ERAS-0015, highlighting encouraging monotherapy responses in KRAS G12X pancreatic cancer and saying the program is moving toward registration-enabling plans. Article Title
• Neutral Sentiment: The company priced an upsized public offering of 31.4 million shares at $17.50 per share, with expected gross proceeds of about $550 million, which should strengthen the balance sheet but also adds dilution. Article Title
• Neutral Sentiment: Multiple legal outlets reminded investors of the pending securities class action and August 10 lead-plaintiff deadline, keeping litigation overhangs in focus. Article Title
• Negative Sentiment: The stock is also being weighed by ongoing allegations tied to a prior patient death, patent-infringement disputes, and related securities-class-action claims, which increase headline risk for investors. Article Title

Erasca Company Profile

Erasca, Inc is a clinical‐stage biopharmaceutical company dedicated to the discovery and development of precision medicines for patients with cancer. The company focuses on small molecule therapeutics that target critical signaling pathways involved in tumor growth and survival, with a primary emphasis on inhibitors of the MAPK pathway. Erasca's approach is designed to deliver oral, targeted therapies that address both oncogene‐driven and immuno‐oncology indications, aiming to improve outcomes for patients with unmet medical needs.

Erasca's pipeline comprises multiple development candidates, including small molecule inhibitors engineered to disrupt key nodes in cancer cell signaling.

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