Guggenheim has increased its price target for Erasca Inc. (NASDAQ: ERAS) to $12.00 from $5.00 and retained a Buy rating on the oncology-focused biopharmaceutical company. The adjustment follows recent clinical and financing developments for Erasca, and comes as the stock has shown substantial short-term appreciation.
Shares have climbed sharply, returning 452% over the past six months, and were trading at $9.61, close to a 52-week high of $10.67 at the time of the note. Guggenheim’s revised valuation incorporates forward-looking assumptions tied to the company’s investigational therapies.
Specifically, Guggenheim now includes revenue estimates for ERAS-0015 that are adjusted using a 30% probability-of-success factor. Those projections cover ERAS-0015 in second-line and beyond non-small cell lung cancer (NSCLC) and pancreatic ductal adenocarcinoma (PDAC), with the firm modeling a potential commercial launch in 2030.
The price-target change reflects recent updates on two of Erasca’s clinical-stage programs - the pan-RAS inhibitor ERAS-0015 and the pan-KRAS inhibitor ERAS-4001 - together with the company’s announced financing activity.
On the clinical timeline, Erasca plans to present initial Phase 1 monotherapy data for ERAS-0015 in patients with RAS-mutant solid tumors in the first half of 2026. The company expects to initiate monotherapy expansion cohorts and combination dose-escalation cohorts in the second half of 2026. Guggenheim’s research note also indicates that Erasca is expected to present Phase 1 data for ERAS-4001 in the second half of 2026.
From a financial position perspective, Erasca reported preliminary year-end cash and securities of approximately $341.8 million as of December 31, 2025. That figure is based on unaudited information and management estimates and has not been reviewed by the company’s independent accounting firm. In addition, Erasca completed a $258.8 million public offering of common stock, selling 25,875,000 shares at $10.00 per share; that offering included the full exercise of underwriters’ options to purchase an additional 3,375,000 shares.
Separately, the company announced plans for a $150 million public stock offering, with a 30-day option for underwriters to acquire an additional $22.5 million of shares. Independent analyst commentary referenced in the note indicates Erasca operates with a moderate debt level and a strong current ratio of 10.45, a measure indicating that liquid assets comfortably exceed short-term obligations.
Market participants should note that valuation opinions are mixed. While Guggenheim raised its target and maintains a Buy rating, third-party analysis referenced in the research indicates the shares may be overvalued at current levels and that additional premium research insights are available to subscribers.
Separately, H.C. Wainwright moved its price target for Erasca to $15 from $11 and maintained a Buy rating after updates from the AURORAS-1 study of ERAS-0015. That study reported both confirmed and unconfirmed partial responses across multiple tumor types and RAS mutations, according to the research note cited by market analysts.
Overall, the analyst actions reflect a combination of encouraging clinical signals and a material strengthening of Erasca’s liquidity profile through recent offerings, while market commentary also highlights valuation considerations at current share prices.