Here's What Analysts Think About Arcus Biosciences (RCUS)

Arcus Biosciences, Inc. (NYSE:RCUS) is one of the best immunotherapy stocks to buy according to hedge funds. On February 12, Arcus Biosciences, Inc. (NYSE:RCUS) was downgraded to Equal Weight from Overweight at Wells Fargo, with the firm bringing the price target on the stock down to $23 from $30. The firm attributed the downgrade to unclear differentiation for Welireg and the potential data readout headwinds from the American Society of Clinical Oncology Genitourinary Cancers Symposium. It further told investors in a research note that the LITESPARK-001 and 002 readouts at ASCO-GU evaluating Welireg plus Keytruda may pose a negative impact on the shares of Arcus Biosciences, Inc. (NYSE:RCUS) and Exelixis.

In another development, Bank of America Securities reiterated a Hold rating on Arcus Biosciences, Inc. (NYSE:RCUS) on January 15, setting a price target of $26. However, Goldman Sachs assumed coverage and upgraded the stock to Buy from Neutral on January 12, adjusting the price target to $28 from $16.

The firm highlighted casdatifan, the company’s lead asset, as a potent and selective HIF-2alpha inhibitor under development for advanced clear cell renal cell carcinoma with a total addressable market of about 17.4K patients in the US/EU and about $1.7B estimated in risk-adjusted peak sales. Goldman Sachs stated that the company’s Phase 1 ARC-20 results in second-line exhibited notable overall response ratios of 31% and 46% for the mono and combo regimen, respectively, and may show further improvement with the combo trial maturing past the 5-month follow-up.

Arcus Biosciences, Inc. (NYSE:RCUS) is a clinical-stage biopharmaceutical company that develops and commercializes immunotherapies. The company competes in segments such as biotechnology, pharmaceutical, and other related sectors that develop immunotherapies for cancer treatment.

While we acknowledge the potential of RCUS as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you’re looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

READ NEXT: 30 Stocks That Should Double in 3 Years and 11 Hidden AI Stocks to Buy Right Now.

Disclosure: None. This article is originally published at Insider Monkey.