On Tuesday, Oppenheimer adjusted its price target for Allogene Therapeutics (NASDAQ:ALLO) shares to $13, down from the previous $14, while keeping an Outperform rating on the stock.
The company, which focuses on developing allogeneic CAR T (chimeric antigen receptor T) therapies for cancer, recently shared its first-quarter business update and conducted an investor call on May 13, 2024.
Allogene has secured rights for the development and commercialization of its CD19-directed allogeneic cell therapies in Europe and the UK, through a deal with Servier. The therapies, including Cema-cel, are part of a growing area of cancer treatment that involves engineering patients' immune cells to attack cancer cells.
The company is anticipating the commencement of a Phase 2 trial named ALPHA3 for first-line Consolidation Large B-cell Lymphoma (LBCL) by mid-2024. Additionally, Allogene expects to release data from a Phase 1 trial for Relapsed/Refractory Chronic Lymphocytic Leukemia (CLL) by the end of 2024.
Allogene also announced a significant cash raise of approximately $110 million, which was underwritten by institutional investors and included insider participation. This financial move is expected to extend the company’s cash runway through 2026, providing more stability for the company's operations and research endeavors.
The price target adjustment by Oppenheimer reflects a revised model that incorporates the potential market opportunity for the LBCL treatment and updated assumptions regarding the company’s operational expenditure. Despite the reduction in the price target, the firm remains optimistic about Allogene's prospects.
InvestingPro Insights
InvestingPro data reveals that Allogene Therapeutics (NASDAQ:ALLO) currently holds a market capitalization of $540.75 million, with a notably high negative P/E ratio of -1.46, reflecting investor expectations of future earnings. The company's revenue has seen a decline over the last twelve months as of Q1 2024, with a decrease of 30.4%. This aligns with analysts' anticipation of a sales decline in the current year. Despite these challenges, Allogene has more cash than debt on its balance sheet, which could provide some financial flexibility as it advances its trials.
Two notable InvestingPro Tips for Allogene include the fact that 7 analysts have revised their earnings upwards for the upcoming period, indicating potential optimism in the company's future performance. Additionally, the Relative Strength Index (RSI) suggests that the stock is currently in oversold territory, which could interest investors looking for potential buying opportunities.
For readers interested in a deeper dive into Allogene's financials and prospects, there are additional InvestingPro Tips available at https://www.investing.com/pro/ALLO. Use coupon code PRONEWS24 to get an extra 10% off a yearly or biyearly Pro and Pro+ subscription, which includes comprehensive analyses and metrics to inform your investment decisions.
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