Erasca Inc. shares fell 6.02% as it crossed below the 5-day SMA amid broader market gains.
The company successfully closed an upsized public offering of 25,875,000 shares, raising approximately $258.8 million. The offering was well-received, indicating strong market demand for its precision oncology therapies. The net proceeds will fund research and development of product candidates and support working capital, enhancing the company's financial flexibility. J.P. Morgan, Morgan Stanley, Jefferies, and Evercore ISI acted as joint book-running managers, reflecting confidence in Erasca's market position.
This capital raise positions Erasca to accelerate its R&D initiatives, potentially leading to significant advancements in its oncology pipeline. However, the stock's decline despite this positive news suggests a sector rotation or profit-taking among investors.
Wall Street analysts forecast ERAS stock price to fall over the next 12 months. According to Wall Street analysts, the average 1-year price target for ERAS is 5.50 USD with a low forecast of 2.00 USD and a high forecast of 11.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
8 Analyst Rating
Wall Street analysts forecast ERAS stock price to fall over the next 12 months. According to Wall Street analysts, the average 1-year price target for ERAS is 5.50 USD with a low forecast of 2.00 USD and a high forecast of 11.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
6 Buy
1 Hold
1 Sell
Moderate Buy
Current: 10.310
Low
2.00
Averages
5.50
High
11.00
Current: 10.310
Low
2.00
Averages
5.50
High
11.00
Guggenheim
Buy
maintain
$5 -> $12
2026-01-27
New
Reason
Guggenheim
Price Target
$5 -> $12
AI Analysis
2026-01-27
New
maintain
Buy
Reason
Guggenheim raised the firm's price target on Erasca to $12 from $5 and keeps a Buy rating on the shares after updating the firm's model to reflecting recent updates on ERAS-0015 and ERAS-4001, as well as the recently announced financing. The firm now incorporates 30% odds of success adjusted revenue estimates for ERAS-0015 in second-line and later NSCLC and PDAC and estimates a 2030 commercial launch, the analyst noted.
Mizuho
Joseph Catanzaro
NULL -> Outperform
initiated
$5 -> $16
2026-01-27
New
Reason
Mizuho
Joseph Catanzaro
Price Target
$5 -> $16
2026-01-27
New
initiated
NULL -> Outperform
Reason
Mizuho analyst Joseph Catanzaro assumed coverage of Erasca with an Outperform rating and price target of $16, up from $5. The firm says the company's RAS inhibitor portfolio is well positioned to establish proof-of-concept in 2026. ERAS-0015 has opportunity for a wider therapeutic window and a competitive clinical profile, the analyst tells investors in a research note.
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Morgan Stanley
Sean Laaman
Equal Weight
maintain
$4 -> $10
2026-01-26
New
Reason
Morgan Stanley
Sean Laaman
Price Target
$4 -> $10
2026-01-26
New
maintain
Equal Weight
Reason
Morgan Stanley analyst Sean Laaman raised the firm's price target on Erasca to $10 from $4 and keeps an Equal Weight rating on the shares after the company shared an early clinical look at ERAS-0015 and reported two confirmed partial responses and one unconfirmed PR at 8 mg QD. While these data are "promising" and the firm raised its view of the odds of success as a result, it acknowledges "it remains early."
Piper Sandler
NULL -> Overweight
upgrade
$5 -> $11
2026-01-16
Reason
Piper Sandler
Price Target
$5 -> $11
2026-01-16
upgrade
NULL -> Overweight
Reason
Piper Sandler raised the firm's price target on Erasca to $11 from $5 and keeps an Overweight rating on the shares. Following a flurry of updates from companies across its coverage, the firm updating its 2026 Catalyst Tracker, as well as several models and price targets.
About ERAS
Erasca, Inc. is a clinical-stage precision oncology company. The Company is focused on discovering, developing, and commercializing therapies for patients with RAS/MAPK pathway-driven cancers. The Company has assembled RAS/MAPK pathway-focused pipeline in the industry, consisting of modality-agnostic programs aligned with its three therapeutic strategies of: targeting key upstream and downstream signaling nodes in the RAS/MAPK pathway; targeting RAS directly; and targeting escape routes that emerge in response to treatment. Its pipeline includes one clinical-stage program (a pan-RAF inhibitor), two IND-enabling stage programs (a pan-RAS molecular glue and a pan-KRAS inhibitor), and an additional discovery-stage program (an EGFR D2/D3 biparatopic antibody). Its lead product candidate is naporafenib, the Company initiated its SEACRAFT-2 pivotal Phase III trial for patients with NRAS-mutated (NRASm) melanoma.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
