Summit Therapeutics (NASDAQ: SMMT) stock got a real shot in the arm Friday with the initiation of coverage by a veteran financial services company. On news that Jefferies is now tracking the stock, investors snapped it up to push its price nearly 6% higher across the day's trading session. That performance well outpaced that of the benchmark S&P 500 index; this only bumped 0.3% higher.

Initiated with a buy

Jefferies, in the person of analyst Hangfei Fu, launched its Summit coverage with a confident buy recommendation and a price target of $31 per share. That's a robust 67% higher than the stock's most recent closing price.

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According to reports, Fu's highly bullish take is focused on ivonescimab, a cancer drug from Chinese biotech Akeso that Summit is developing in the hopes of bringing it to market outside of the Asian country to treat lung cancer. Fu pointed out the encouraging results of the drug in recent testing and said it could hit approximately $10 billion in sales if approved.

Ivonescimab has done rather well in head-to-head clinical trials against a top cancer drug, Merck's Keytruda. That alone has attracted much investor attention and helped propel Summit's share price higher.

Room for growth

So the question is, could it go higher still? At this stage, it seems that Summit is in a fine position with ivonescimab, which is showing many signs of being a potential blockbuster on the market. We should bear firmly in mind, however, that the path to regulatory approval -- especially in this country -- is long and difficult, and never guaranteed. Typical for biotech stocks, Summit is a play for those with an above-average tolerance for risk.

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