Oric gains as Guggenheim upgrades on near-term catalysts
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- Oric Pharmaceuticals (NASDAQ:ORIC) added ~6% pre-market Tuesday after Guggenheim upgraded its shares to Buy from Neutral, citing upcoming data readouts for the oncology-focused biotech.
- The analyst Michael Schmidt points out that Oric (ORIC) shares currently trade near its cash level, suggesting a limited value for its pipeline.
- Schmidt also notes that the company is on track to release the first proof-of-concept Phase I data for oncology assets ORIC-144 (EGFR/HER2-mutated cancers), ORIC-533 (multiple myeloma), and ORIC-944 (prostate cancer) in H2 2023.
- “As such, we see an asymmetric risk/reward on ORIC shares heading into 2H23, with limited potential downside but meaningful potential upside if these Phase I data readouts are positive,” the analyst wrote with a $15 per share target on the stock.
- Issuing a Hold rating on Oric (ORIC), Seeking Alpha contributor Avisol Capital Partners argued in March that the “company is trading at cash because it has produced no major data.”