Morgan Stanley Says Buy Repare Therapeutics, Sees Nearly 60% Upside

Repare Therapeutics Inc. (NASDAQ:RPTX), which is working to develop precision oncology therapies by leveraging synthetic lethal interactions in cancer, went public in June.

The Repare Analyst: Jeffrey Hung initiated coverage of Repare Theraupetics with an Overweight rating and $37 price target.

The Repare Approach: Repare is “developing drugs targeting one gene that is a synthetic lethal pair with another already mutated in cancer cells,” Hung said in the initiation note.

RP-3500, the company’s lead drug candidate, is expected to enter Phase 1/2 studies in the third quarter, the analyst said. Using their screening platform SNIPRx, Repare identified 19 additional (STEP2) genes in cancer that could be treated with RP-3500, he said.

This increased the treatable patient population from 2% to 10%, Hung said.

Repare’s SNIPRx screening platform “identifies novel targets,” which increases the upside potential for the stock.

RPTX Price Action: Shares of Repare Therapeutics ended Tuesday’s session down 3.33% at $23.21.