Erasca (ERAS) Prices Upsized Public Offering of 22.5M Shares at $10.00 Each, Raising $225M

Written by Emily J. Thompson, Senior Investment Analyst

ERAS+2.45%

Source: seekingalpha

Updated: 1h ago

0mins

Source: seekingalpha

Upsized Offering: Erasca has priced an upsized public offering of 22.5 million shares at $10.00 each, raising gross proceeds of $225 million, significantly bolstering the company's financial resources for future R&D initiatives.
Underwriter's Option: The underwriters have a 30-day option to purchase an additional 3.375 million shares, which, if exercised, would further enhance Erasca's liquidity and market confidence.
Clear Use of Proceeds: The funds raised will support the research and development of product candidates and other development programs, as well as working capital and general corporate purposes, ensuring the company's sustained growth during its clinical stage.
Closing Timeline: The offering is expected to close on January 23, 2026, marking a significant step in Erasca's capital market strategy and laying the groundwork for future business expansion.

ERAS

$10.05+Infinity%1D

Analyst Views on ERAS

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

6 Buy

1 Hold

1 Sell

Moderate Buy

Current: 9.810

Low

2.00

Averages

5.50

High

11.00

Current: 9.810

Low

2.00

Averages

5.50

High

11.00

Piper Sandler

NULL -> Overweight

upgrade

$5 -> $11

Al Analysis

2026-01-16

Reason

Piper Sandler

Price Target

$5 -> $11

Al Analysis

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.

Morgan Stanley

Equal Weight

maintain

$2 -> $4

2026-01-08

Reason

Morgan Stanley

Price Target

$2 -> $4

2026-01-08

maintain

Equal Weight

Reason

Morgan Stanley raised the firm's price target on Erasca to $4 from $2 and keeps an Equal Weight rating on the shares. The firm sees a continuation of U.S. small-to-mid cap biotech's outperformance in 2026 as commercial names transition from "capital consumers to producers" and Large Cap Biopharma faces a looming patent cliff, the analyst tells investors in an outlook note for the group.

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Piper Sandler

Overweight

initiated

2026-01-07

Reason

Piper Sandler

Price Target

2026-01-07

initiated

Overweight

Reason

Piper Sandler initiated coverage of Erasca with an Overweight rating and $5 price target. The company is is advancing a "potentially differentiated" RAS-targeted pipeline including a pan-RAS molecular glue, and a pan- KRAS inhibitor, the analyst tells investors in a research note. The firm says preclinical data suggests the potential for superior RAS inhibition and anti-tumor activity virus Revolution Medicines' daraxonrasib.

BofA

Underperform

maintain

$1 -> $2

2026-01-06

Reason

BofA

Price Target

$1 -> $2

2026-01-06

maintain

Underperform

Reason

BofA raised the firm's price target on Erasca to $2 from $1 and keeps an Underperform rating on the shares. The firm is updating its price targets for U.S Biopharmaceuticals under its coverage, the analyst tells investors. Over the past few months, several key items "have fallen into place," including positive data catalysts being rewarded; large-cap biopharma spending cash on M&A and in-licensing; growing backlog of companies on the private side; improving access to capital; and limited impact from drug price regulation, BofA says. The firm believes biotech is back, but the biggest concern is whether this will last.

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.