UPDATE: Deutsche Bank Initiates Coverage On Verastem On Multiple Positive Factors

In a report published Tuesday, Deutsche Bank analyst Alethia Young initiated coverage on

with a Buy rating and $14.00 price target. In the report, Deutsche Bank noted, “Verastem's lead asset is VS-6063 for the treatment of mesothelioma currently in pivotal studies. We see VSTM as a platform cancer company based on its robust scientific grounding around cancer stem cells. Pipeline opportunities are a free call option, in our view, while mesothelioma market size & potential clinical success are unappreciated. VSTM's market cap is ~$200M and shares are trading near cash of ~$4.5/sh. Shares are also trading at 52-week low although clinical progress has been made in 12 months.” Verastem closed on Monday at $8.05.