Truist Securities initiated coverage on Arcus Biosciences (NYSE:RCUS) with a Buy rating and a $35 price target.
The firm raised its target from $30, citing increasingly compelling upside driven by casdatifan's validated mechanism of action and emerging best-in-class profile in renal cell carcinoma (RCC).
As the PEAK-1 pivotal study in second-line clear cell RCC advances and line expansion efforts continue, Truist sees a path to approximately $2.9 billion in peak revenue.
Beyond casdatifan, Truist highlighted Arcus' medicinal chemistry capabilities, which could drive further value from broader immunology and inflammation programs including MRGPRX2, TNFi, and CCR6i.
Truist believes casdatifan has potential as the next backbone therapy in RCC, and the immunology/inflammation optionality anchors the thesis. The optimism follows a 178% return in Arcus shares over the past year.
In recent news, Arcus reported Q1 2026 results missing expectations: EPS of -$1.02 (vs. -$0.85 consensus) and revenue of $17 million (vs. $31.61 million expected).
