J.P. Morgan analyst Rachel Vatnsdal has maintained their bullish stance on ADPT stock, giving a Buy rating yesterday.
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Rachel Vatnsdal’s rating is based on several strategic and financial factors. The termination of the collaboration with Genentech allows Adaptive Biotechnologies to refocus its resources on more promising projects, such as developing digital TCR-antigen prediction models. This shift in focus is expected to enhance the company’s capabilities and open up new opportunities for partnerships in the future, despite the current absence of immediate cell therapy-related collaborations.
Financially, the termination of the Genentech agreement results in a significant recognition of non-cash revenue, with Adaptive Biotechnologies expecting to recognize approximately $41.2 million in 2025. This financial adjustment provides a clearer picture of the company’s revenue stream and aligns with its strategic shift towards digital solutions. Overall, the removal of exclusivity constraints and the potential for new partnerships contribute to the positive outlook, supporting the Buy rating.
In another report released yesterday, BTIG also maintained a Buy rating on the stock with a $14.00 price target.