Shares of Summit Therapeutics (SMMT -3.61%) had jumped 14.3% at 11:31 a.m. ET on Tuesday. The nice gain came after reports that H.C. Wainwright analyst Mitchell Kapoor maintained a "buy" rating for the stock with a 12-month price target of $44.
Kapoor's target price reflects an upside potential for Summit of over 100%. Other Wall Street analysts are also bullish about the biotech stock, although not to the same extent. The average price target for Summit is roughly 52% above the current share price.
Underscoring great expectations
This latest analyst recommendation underscores great expectations for Summit. The company is evaluating its experimental immunotherapy ivonescimab in late-stage clinical studies targeting non-small cell lung cancer (NSCLC). Summit plans to announce the results from the first of those studies in mid-2025.
A previous late-stage study conducted by Summit's partner, Akesobio, found that ivonescimab decisively beat Merck's blockbuster drug Keytruda in improving progression-free survival among NSCLC patients. Ivonescimab has already won regulatory approval in China.
Summit hopes ivonescimab will be effective in other cancer indications as well. The company stated at a recent investor conference that it intends to expand its clinical development for the experimental immunotherapy "way beyond NSCLC."
Is Summit Therapeutics stock a buy?
Investors shouldn't buy any stock solely on the recommendation of one analyst. However, Wall Street's enthusiasm for Summit Therapeutics appears to be justified. If ivonescimab fulfills its potential, Summit should be worth a lot more within a few years than it is today. I think this stock is a great pick for aggressive investors.
