Fusion Pharmaceuticals ( NASDAQ: FUSN ) stock gained as much as 10.6% to $2.72 in Wednesday trading, after William Blair research initiated the clinical-stage oncology company with an outperform rating.
William Blair analyst Andy Hsieh, "using conservative parameters and assumptions", believes the fair value of FUSN shares is $8.70, which is more triple FUSN's last closing price of $2.46.
"We are initiating coverage of Fusion Pharmaceuticals with an Outperform rating, based on our view that the company's wholly owned potent and specific radiopharmaceuticals are underappreciated by the Street", said Hsieh.
The Canadian-American company recently said the U.S. FDA had cleared it to start trials with its solid tumor candidate FPI-2059. FUSN's lead clinical candidate is FPI-1434, which has been engineered to deliver alpha particles to cancer cells.
"From a macro perspective, we believe that radiopharmaceuticals are in a prime position to expand into the mainstream treatment paradigm from a specialized niche... In our view, Fusion's differentiated proprietary technology platform will position the company well to capture this trend", said Hsieh.
William Blair's outperform rating on FUSN compares to a Wall Street average rating of strong buy and a Quant rating of hold.
FUSN stock was last up 6.1% at $2.61 in morning trading.
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Fusion Pharma stock rises after William Blair initiates with outperform rating