Oct. 15 at 8:29 PM
Stifel
$RVMD: We are resuming coverage of Revolution Medicines (RVMD) with a Buy rating and
$85 target price.
$IMRX $ERAS
$DAWN $BBOT
We believe RVMD is on the cusp of majorly disrupting the PDAC standard of care - we expect other indications to follow in years to come.
The TAM is massive, ~30% of all solid tumors have some type of RAS alteration. RVMD's first-in-class pan-RAS is poised to benefit from a substantial first-to-market advantage; nearest competitors are years behind.
We model first revenue for RVMD in 1Q27 and global revenue of
$11.3B by 2035.
Sector specialists are in 2 camps on RVMD:
(1) too expensive, or
(2) still undervalued for PDAC opportunity alone.
We expect that once the 2L PDAC Ph3 reads out in 2026, the game changes as the stock becomes attractive to a more diverse group of investors, and those currently on the sideline would be wise to take a stake sooner.
