Cardiff Oncology, Inc. (CRDF)

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Analysts Say ‘Buy the Pullback
Cardiff Oncology (CRDF)

The first stock we’re looking at, Cardiff Oncology, is a clinical stage biopharma company with a laser-focus on cancer treatment. Specifically, the company focuses on the development of medication options for cancer patients whose current treatment has lost efficacy. Cardiff is developing onvansertib, a first-in-class, third generation Polo-like Kinase 1 (PLK1) inhibitor, designed to work in combination with existing medications to overcome treatment resistance, improve patient response, and increase survival rates.
Cardiff’s current research pipeline features onvansertib in three separate clinical programs, in combination with different existing drugs to combat three different cancers. The programs are a Phase 1b clinical trial of onvansertib plus Folfiri/Avastin for the treatment of KRAS-Mutated Metastatic Colorectal Cancer (mCRC), and two Phase 2 trials, one in combination with Zytiga to treat Metastatic Castration-Resistant Prostate Cancer (mCRPC) and one to treat Relapsed/Refractory Acute Myeloid Leukemia (AML) in combination with Decitabine.

Preliminary data on these studies shows positive responses to onvansertib in combination with existing therapies. In the mCRC program, 86% of evaluable patients have shown a clinical benefit, while in the mCRPC program 54% of patients across three cohorts showed a radiographic stable disease. In the AML program, 20% of patients achieved a complete remission. These early data are considered significant, and the company has plans to initiate further trials later this year.

This background, along with the stock’s 50% fall year-to-date, have combined to catch the attention of 5-star analyst Jason McCarthy of Maxim Group. McCarthy points out that the shares have retreated recently due to profit-taking and broader market changes.

“While valuation has pulled back since reaching a 52-week high in late 4Q, from a KRAS perspective, CRDF is not alone… and we view Cardiff as potentially having the more attractive asset in mCRC which continues to be supported with emerging data… we still see a KRAS space that will continue to be active and is of potential high value given the unmet need, a company in Cardiff that is well-financed ($130M in cash as of YE20), and a drug in onvansertib that has multiple opportunities. Combined, we see this as an opportunity to buy CRDF shares on the weakness,” McCarthy opined. McCarthy puts a Buy rating on CRDF, and his $30 price target implies a robust upside of 242% from current levels.

https://www.tipranks.com/news/article/analysts-say-buy-the-pullback-in-these-3-stocks-2/