Sutro Biopharma: A Promising Oncology Play

Investors undaunted by the risk/reward equation and in search for strong returns will often turn to the biotech sector. This is a unique corner of the stock market where success Read More... The post Sutro Biopharma: A Promising Oncology Play appeared first on TipRanks Financial Blog.

Sutro Biopharma: A Promising Oncology Play

Investors undaunted by the risk/reward equation and in search for strong returns will often turn to the biotech sector. This is a unique corner of the stock market where success is easily defined: present successful solutions for diseases and the market will pay its reward. The problem of course is that the space is fraught with risk and dependent on the treatments making the grade – no mean task when put under the regulators’ intense scrutiny.

For H.C. Wainwright's Andrew Fein, Sutro Biopharma () is a name that offers much promise, based on the company’s XpressCF platform which is producing “formidable ADC candidates for oncology.”

“We believe Sutro Biopharma can continue to be a standout performer in the antibody-drug conjugate (ADC) space, primarily driven by their novel cell-free (CF) XpressCF platform, which has generated multiple clinical candidates to date,” the 5-star analyst opined.

Sutro’s pipeline is all based on the platform and includes several collaborations with some well-known pharma names (Merck, Bristol Myers Squibb) which should help the XpressCF platform “sustain longer term growth.” Fein, however, thinks Sutro’s value lies mostly with its two “wholly owned assets.”

These are STRO-002 (folate receptor alpha (FolRa-α) ADC), indicated for the treatment of ovarian cancer (OC), and STRO-001 (CD74 ADC), intended as a therapy for Non-Hodgkin’s lymphoma (NHL) and multiple myeloma (MM).

The former has impressed in a Phase 1 study, with updated results presented during ASCO 2021 showing “signals of efficacy and tolerability” which compared favorably to competitors’ offerings at the same stage of development.

Fein believes the candidate has the potential to be the “best-in-class FolRa-α targeting ADC for patients with platinum-resistant ovarian cancer.” In 2H21, the company will meet with the FDA to discuss the development pathway ahead for the drug.

As for STRO-001, during ASH 2020, Sutro presented preliminary results from the Phase 1 trial which showed 1 CR (complete response) with 2 PRs (partial response) in heavily pretreated patients with DLBCL (diffuse large B-cell lymphoma) - the most common type of NHL - 1 SD (stable disease) in marginal zone lymphoma (MZL) and 2 SDs in follicular lymphoma (FL).

Add into the mix a tolerability profile which reported no ocular toxicity, and Fein says the data is “encouraging.”

“Overall,” the analyst further added, “We view the recent update during ASH 2020 to bode well for future positive readouts and believe that STRO-001 has a high probability of being active across more tumor types.”

To this end, Fein rates STRO shares a Buy along with a $35 price target. This figure suggests ~77% upside from current levels. (To watch Fein’s track record, )

Although STRO has only a few analysts currently throwing the hat in the ring, all are bullish on the stock. STRO’s analyst consensus rating is a Strong Buy, with all 3 analysts giving it the thumbs up. The 12-month average price target stands at $30.67, which implies ~55$ upside for the year ahead. (See STRO stock analysis on TipRanks)

To find good ideas for biotech stocks trading at attractive valuations, visit TipRanks’ Best Stocks to Buy, a newly launched tool that unites all of TipRanks’ equity insights.

Disclaimer: The opinions expressed in this article are solely those of the featured analyst. The content is intended to be used for informational purposes only. It is very important to do your own analysis before making any investment.

The post Sutro Biopharma: A Promising Oncology Play appeared first on TipRanks Financial Blog.

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Is Luminar Stock a Buy Following Studio Day? Analyst Weighs In

Luminar Technologies (LAZR) spared no effort in dazzling attendees at its Studio Day last week. With a full production crew, dozens of employees, a pair of demo vehicles (one boasting Read More... The post Is Luminar Stock a Buy Following Studio Day? Analyst Weighs In appeared first on TipRanks Financial Blog.

Is Luminar Stock a Buy Following Studio Day? Analyst Weighs In

Luminar Technologies () spared no effort in dazzling attendees at its Studio Day last week. With a full production crew, dozens of employees, a pair of demo vehicles (one boasting a rival’s offering) and a live segment being shot for CNBC, Berenberg analyst Michael Filatov was impressed with the promotional effort. However, as with anything, the glossy surface needs to be backed by substance and Filatov came away unsure Luminar had fully delivered the goods.

Along with the debut of Blade, the lidar maker’s self-driving sensor architecture designed for robotaxis and autonomous trucks, Luminar showcased the first consumer vehicle with its Iris lidar fully integrated. The system remains on track to enter full production with Luminar's OEM collaborators by late 2022.

The demo amounted to a comparison display between Luminar’s Iris lidar and rival Velodyne’s original spinning lidar with 64 channels (HDL-64E) and the more recent 16-channel Puck lidar. The performance difference, particularly regarding range, was “significant.”

That said, the demo also brought to the fore a concern the analyst was already aware of.

At the start, the guests were presented with a “very hi-res visual” using the Iris at a low frame rate (1Hz) that was akin to viewing in slow-motion. But the space between lines and the resolution changed considerably when the frame rate was boosted to 10Hz (an OEM minimum requirement).

“This raises the question as to how significant the fall-off would be in terms of resolution at a higher frame rate,” Filatov said. “In the demonstrations we have seen from Innoviz and Aeye the lidars appear to produce more lines and greater resolution at higher frame rates (though these were not in person demos). As the Luminar team pointed out, some lidar makers will show a very high-resolution video that uses editing to hide the fact that the frame rate is extremely low.”

Filatov’s takeaway for investors, then, is to be “vigilant about the videos and demos they’re given.”

Overall, there is no change to Filatov’s assessment of Luminar. The analyst rates LAZR a Hold, and his $15.50 price target implies ~21% downside from current levels. (To watch Filatov’s track record, )

Filatov’s colleagues have a more upbeat outlook. Going by the $26.43 average price target, shares are anticipated to add ~9% in the coming months. Currently the analyst consensus rates the stock a Moderate Buy, based on 3 Buys and 4 Holds. (See LAZR stock analysis on TipRanks)

To find good ideas for stocks trading at attractive valuations, visit TipRanks’ Best Stocks to Buy, a newly launched tool that unites all of TipRanks’ equity insights.

Disclaimer: The opinions expressed in this article are solely those of the featured analysts. The content is intended to be used for informational purposes only. It is very important to do your own analysis before making any investment.

The post Is Luminar Stock a Buy Following Studio Day? Analyst Weighs In appeared first on TipRanks Financial Blog.

Source : Tip Ranks More   

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