SVB Leerink launched coverage of Compugen (NASDAQ:CGEN) with an “outperform” rating and $15 price target. The stock closed at $13.22 on May 6.
“TIGIT / PVRIG could be the next evolution in immune checkpoint blockade, and we value Compugen’s perspective as co-discover of the pathways,” writes analyst Daina Graybosch, adding that the two immune checkpoints are “under heavy scrutiny for their potential to extend the reach of PD-(L)-1 blockade in cancer.”
Ms. Graybosch said that although the anti-TIGIT landscape has become increasingly crowded, “Compugen is pursuing a unique strategy that is inspired from its decade long work on DNAM-1 axis signaling: blocking TIGIT, PVRIG (a related immune checkpoint receptor), and PD-1 signaling in parallel.”
If the company’s hypothesis on the importance of targeting PVRIG in certain indications is proven correct, she said Compugen would be in an enviable position, as it has the only PVRIG program in clinical development.
“With few small-to-mid capitalization competitors, major catalysts for the class on the horizon, and credible press reports of M&A in this area, we believe a M&A premium is warranted in our valuation,” she added.
