UPDATE: H.C. Wainwright nitiates on Clovis Oncology On Prospects Of CO-1686

In a report published Friday, H.C. Wainwright & Co. analyst Caroline Stewart initiated a Neutral rating on Clovis Oncology (NASDAQ: CLVS) and set a price target of $55.00.

In the report, H.C. Wainwright & Co. says "We believe that the current market valuation for CLVS fairly values: 1) CO-1686 (a small molecule covalent mEGFR inhibitor) for the treatment of non-small cell lung cancer (NSCLC) driven by mutated EGFR (mEGFR); and 2) platform value for rucaparib (a PARP1/2 inhibitor) for the potential treatment of ovarian and breast cancers. While we believe that CO-1686 could eventually demonstrate a best-in-class profile and see the commercial opportunity in mEGFR NSCLC as sizable (estimated $2.5B+), we see the risk-reward as still fundamentally balanced on the prospects of upcoming Phase 1/2 data, even with the recent market pullback (to an EV of ~$1B)."

Clovis closed on Thursday at $52.89.