Analysts are closely watching Merus and see more upside ahead coming out of one of the biggest biotechnology conferences in the U.S. Merus shares shot up late last month following the release of promising Phase 2 data for a treatment for head and neck cancer. The trial data showed that when Merus’ treatment was used alongside Merck ‘s Keytruda, nearly 80% of patients were alive after 12 months. This has made the Netherlands-based company the talk of the investing set that flocked to Chicago for the American Society of Clinical Oncology’s annual meeting , which concludes Tuesday. “They’re first in class. We think they’re best in class,” said Matt Phipps, group head of the biotech equity research team at William Blair. “That’s just kind of a combination that a lot of investors really want to be a part of.” The stock has popped about 40% in the past month and rallied to a new all-time high on Tuesday. Still, multiple analysts interviewed by CNBC Pro said Merus can surge even higher — with one even suggesting shares can more than double from current levels given there are more catalysts on the horizon. MRUS 1M mountain Merus, 1-month Phipps said Merus’ data overshadowed a similar report from Bicara Therapeutics , whose shares have tumbled 24% over the past month. He said Merus’ release cemented itself as the best drug in combination with Merck ‘s Keytruda for head and neck cancer. Guggenheim analyst Michael Schmidt said similar success in Phase 3 data could more than double the value of Merus’ shares. To be sure, he noted that investors should be prepared to wait between 12 and 18 months to see this upside given the schedule for data releases that can boost the stock. Beyond that, he said the same drug combination has potential for treating colorectal cancer. While Schmidt acknowledged that its not a major focus of investors yet, he said data from ongoing Phase 2 studies expected in the second half of 2025 is something to keep an eye on. Expectations for this, he said, are “very modest.” “It’s a stock that we have a lot of conviction on,” Schmidt said. “We like this story a lot.” Multiple analysts interviewed by CNBC said the name could also be an acquisition target from bigger-name biopharmaceutical companies, which could further drive upside. That can also help explain why Wall Street is so bullish. Every analyst polled by LSEG has a buy or strong buy rating, with an average price target suggesting 45% in upside ahead. “You want to buy it now,” said BMO analyst Evan Seigerman, who called the company’s data “really compelling.” “This is the type of company that a large pharma company would want to acquire.” Seigerman said the company has both “great” clinical data and is in an area with “unmet need,” which is a combination that can make the stock a winner in what he described as a competitive sector. A boost to Merck? The treatment’s success can also have knock-on benefits for Merck shares given the potential sales bump for Keytruda, according to Leerink analyst Andrew Berens. Berens said Keytruda is approved as a monotherapy, but only about 20% of patients respond to it, making the average time spent on the drug about few months. But used in conjunction with Merus’ product, he noted that data shows that rate shoots up to the high 60% level and increases duration to nearly a year. “It’s a win-win for Merck,” Berens said. “This drug has its own activity,” he said, “but it also means they can sell more of their flagship drug.”