10 New Stocks on the Rise

1. Erasca Inc. (NASDAQ:ERAS)

Number of Hedge Fund Holders: 24

1-Month Performance: 186.35%

Erasca Inc. (NASDAQ:ERAS) is one of the new stocks on the rise. On January 27, Guggenheim increased its price target for Erasca from $5 to $12 with a Buy rating. This decision followed a model update that accounted for recent clinical developments and fresh financing. The firm’s revised valuation includes risk-adjusted revenue estimates for the candidate ERAS-0015, assigning it a 30% probability of success in treating second-line or later NSCLC and PDAC. These projections are centered on an anticipated commercial launch in 2030, alongside updated expectations for ERAS-4001.

A day before that, Morgan Stanley also increased the price target for Erasca to $10 from $4 while maintaining an Equal Weight rating. This adjustment followed promising initial clinical data for ERAS-0015. The update was triggered by reports of two confirmed and one unconfirmed partial response at the 8 mg QD dose level. Although the firm raised its probability-of-success estimates based on these early signs of efficacy, it remains cautious and noted that the clinical data set is still in its infancy.

Earlier on January 16, Piper Sandler raised its price target for Erasca to $11 from $5 with an Overweight rating after the firm updated its 2026 Catalyst Tracker and refined several valuation models following a series of updates from companies across its coverage. The revised target reflects the firm’s broader effort to incorporate recent industry shifts and internal tracking data into its outlook for the biopharma sector.

Erasca Inc. (NASDAQ:ERAS) is a clinical-stage precision oncology company that discovers, develops, and commercializes therapies for patients with RAS/MAPK pathway-driven cancers.

While we acknowledge the potential of ERAS to grow, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than ERAS and that has 100x upside potential, check out our report about this cheapest AI stock.

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