Investing.com – Stifel raised its price target on to $20 from $10 while maintaining a Buy rating, analyst Laura Prendergast said Tuesday. The stock currently trades at $15.38, near its 52-week high of $16, following a remarkable 1,002% return over the past year. According to InvestingPro Tips, two analysts have recently revised their earnings upwards for the upcoming period, though the company remains unprofitable.

The firm projects Erasca will generate approximately $3.2 billion in global revenue by 2035, representing about 20% of its revenue estimate for RVMD in the same year. The new price target assumes ERAS-0015 pan-RAS data in the first half of 2026 will show slight differentiation from RVMD’s early daraxonrasib safety and efficacy results.

Erasca announced Tuesday the exercise of its option to expand its existing license agreement with Joyo Pharmatech to include China, Hong Kong and Macau. The expanded agreement provides Erasca with full access to Joyo data, worldwide control of development, and control of future data releases.

The number of patients dosed in China to date is likely meaningfully higher than in the U.S., according to management. The company has not provided guidance on when Chinese data would be shared.

Stifel estimates Erasca paid approximately $50 million for the expanded rights, though the amount was not disclosed. The firm views the expansion as a strong signal for internal enthusiasm at Erasca. Despite the stock’s strong momentum, InvestingPro analysis suggests shares may be overvalued relative to its Fair Value estimate. For deeper insights into ERAS’s valuation and access to over 10 additional ProTips, visit InvestingPro.

In other recent news, Erasca Inc. has expanded its license agreement with Joyo Pharmatech Co., Ltd., securing worldwide rights to the RAS-targeting drug ERAS-0015, including territories such as China, Hong Kong, and Macau. This move involves a one-time payment to Joyo based on their development stage. Additionally, several analyst firms have adjusted their price targets for Erasca. Clear Street increased its target to $20.00, citing a new clinical trial and supply agreement with Tango Therapeutics to test ERAS-0015 in combination with Tango’s PRMT5 inhibitor, vopimetostat. Guggenheim also raised its target to $12.00, reflecting updates on Erasca’s pan-RAS and pan-KRAS inhibitors. H.C. Wainwright increased its target to $15.00 following clinical updates from the AURORAS-1 study, which showed promising results for ERAS-0015. Meanwhile, Stifel reiterated a Buy rating and maintained a $10.00 price target, noting Erasca’s position in the competitive pan-RAS landscape. These developments highlight Erasca’s ongoing efforts and progress in cancer treatment research.

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