FUSN stock is undervalued, RBC says

RBC Capital Markets analyst Gregory Renza has launched coverage of Fusion Pharmaceuticals (Fusion Pharmaceuticals Stock Quote, Chart, News, Analysts, Financials NASDAQ:FUSN)

Based in Hamilton, Ontario, and Boston, Mass, Fusion Pharmaceuticals is developing next-generation radiopharmaceutical drugs, with a focus on targeted alpha therapies (TATs). Radiopharmaceuticals have radioactive atoms (radioisotopes) that emit energy as they decay and can be used either as a diagnostic or therapeutic or both.

As reported by the Globe and Mail today, Renza December 20th initiated coverage of FUSN with an “Outperform” rating and price target of $12.00. The analyst explained why he thinks the stock is undervalued.

“We see the radiopharmaceutical industry as a growing bright spot in therapeutics after the approval of NVS’s Pluvicto, an infusion of capital from strategic activity and company formation, and validating M&A as larger players look to new RPT capabilities to create differentiated oncology platforms,” he wrote. “We believe FUSN is competitively positioned based on its proprietary target alpha therapy platform, diverse pipeline, deep radiopharma pedigree, as well as established manufacturing expertise, key to commercial success. With FUSN’s 225Ac radiopharma strategy advancing, we look to near-term updates of FPI-2265 (225Ac-PSMA) and FPI-1434 (225Ac-IGF-1R) as potential value-inflection opportunities over 2024 to set the stage for ongoing share appreciation.”

At press time, shares of FUSN were up 4.1 per cent to $6.275.