UPDATE: Stifel Upgrades Clovis Oncology to Buy, Names $50 PT on Favorable Risk/Reward

In a report published Thursday, Stifel analyst Brian Klein upgraded the rating on

from Hold to Buy, and named a $50.00 price target. In the report, Stifel noted, “Following the significant pull-back of ~60% from recent highs, we believe Clovis now presents with significant upside potential based on clinical and commercial prospects for CO-1686 in second-line EGFR-mutant NSCLC with T790M mutation. While we still remain conservative on approval timing and potential in earlier-stage disease, and note safety/tolerability concerns (particularly hyperglycemia), we view '1686 as a compelling and commercially viable, clinical candidate. We derive a compelling target price based on usage in the T790M population alone and note that additional '1686 indications as well as clinical success for other pipeline candidates could provide further upside.” Clovis Oncology closed on Wednesday at $38.40.