Agenus: Hold Rating Amid Strategic Shifts and Valuation Risks

H.C. Wainwright analyst Emily Bodnar has reiterated their neutral stance on AGEN stock, giving a Hold rating on March 12.

Emily Bodnar’s rating is based on the recent financial performance and strategic outlook of Agenus. The company reported a slight increase in collaboration revenue for the fourth quarter of 2024, but a significant reduction in operating expenses, which was more than anticipated. This cost reduction is largely attributed to a decrease in headcount and a shift in clinical programs to investigator-sponsored trials. Despite these efforts, Agenus faces the challenge of needing to initiate late-stage trials or find a partner to advance its indications toward FDA approval.
Furthermore, the valuation and risks associated with Agenus contribute to the Hold rating. The necessity for a large Phase 3 trial to support the approval of their bot/bal treatment in MSS-CRC is expected to delay potential approval and require substantial capital. The current valuation includes a 30% probability of success for this treatment, but does not account for other pipeline assets. Additional risks include potential safety issues, lower-than-expected efficacy, increased competition, regulatory concerns, and significant financing needs projected through 2037.

In another report released on March 12, Robert W. Baird also maintained a Hold rating on the stock with a $3.00 price target.