ADC Therapeutics: Strong Financials and Promising Trials Support Buy Rating

H.C. Wainwright analyst Robert Burns reiterated a Buy rating on ADC Therapeutics (ADCT – Research Report) today and set a price target of $8.00.

Robert Burns has given his Buy rating due to a combination of factors including ADC Therapeutics’ financial performance and future prospects. The company reported a narrower net loss for the fourth quarter of 2024 than previously estimated, alongside a solid cash position that is expected to support operations into the second half of 2026. This financial stability is bolstered by upcoming data catalysts, such as the anticipated results from the LOTIS-7 and LOTIS-5 trials, which could enhance the company’s product pipeline and market position.
Moreover, Burns employs a discounted cash flow analysis with optimistic probabilities of approval for ADCT-402 in various lymphoma treatments, resulting in a firm valuation of $871 million and a price target of $8 per share. While there are risks, such as potential delays in drug approvals and market uptake challenges, the overall outlook remains positive, supporting the Buy recommendation.

In another report released on March 28, Guggenheim also maintained a Buy rating on the stock with a $7.00 price target.