JPMorgan Starts Arcus Biosciences (RCUS) at Overweight

JPMorgan analyst Priyanka Grover initiates coverage on Arcus Biosciences (NYSE: RCUS) with a Overweight rating and a price target of $41.00.

The analyst comments: “Our Overweight thesis centers on casdatifan, Arcus’s once-daily oral HIF-2α inhibitor for clear cell renal cell carcinoma (ccRCC), transitioning from a late-line monotherapy signal into a credible multi line backbone strategy. Our model assumes worldwide unadjusted peak sales of ~$4B by 2035, including ~$3.6B in the U.S. across treatment settings. The clinical profile appears differentiated within HIF-2α-directed renal cancer, with ARC-20 100 mg once-daily tablet cohort showing median PFS of 15.1 months and confirmed ORR of 45% in 31 patients (January 30, 2026 cut-off), with safety remaining acceptable at the selected 100 mg development dose. Quemliclustat, CD73 inhibitor in phase 3 PRISM-1 for 1L metastatic pancreatic ductal adenocarcinoma (PDAC), adds a second late-stage path, with results expected in 1H27. RCUS shares currently appear to reflect only 2L+ ccRCC within our model at low-$20s / share and we see upside from 1L ccRCC and quemliclustat. In the near term, we view the October 20, 2026 ARC-20 investor event as a potential key inflection point, with new casdatifan data expected across first-line combinations, a second-line combination and late-line monotherapy.

A positive share move to the upside is tied to confirmation of casdatifan durability, combinability, and first-line breadth. Additionally, there is optionality with quemliclustat within the fast evolving 1L PDAC space and the broader oncology combination platform that could provide additional value.”

For an analyst ratings summary and ratings history on Arcus Biosciences click here. For more ratings news on Arcus Biosciences click here.

Shares of Arcus Biosciences closed at $22.51 yesterday.

You May Also Be Interested In

• Kotak Downgrades Lenskart Solutions (LENSKART:IN) to Reduce (3)
• Canaccord Starts Silverco Mining Ltd (SICO:CN) at Spec. Buy
• JPMorgan Starts Jardine Cycle & Carriage Limited (JCNC:SP) (JCYGY) at Underweight