Janux Therapeutics (NASDAQ:JANX) traded higher on Friday after Stifel initiated its coverage with a buy recommendation, citing a trial readout for its prostate cancer therapy JANX007 that the cancer drug developer is scheduled to report within the next few months.

Analyst Bradley Canino argued that the readout from a Phase 1 trial for the T Cell Engager (TCE) should indicate favorable durability results and prompt the company to announce an accelerated development timeline for the drug.

According to Canino, an interim readout for JANX007 in February from the same study underscored the drug’s potential as a new and differentiated therapeutic option for prostate cancer, where there is an unmet medical need in the U.S.

“We recommend shares through updated data in 2H24 as a catalyst to confirm the initial activity/safety signals, plus provide an initial view of durability,” Canino wrote, issuing a $70 price target on JANX.