In a report released today, Robert Burns from H.C. Wainwright reiterated a Buy rating on Allogene Therapeutics (ALLO – Research Report), with a price target of $8.00.
Robert Burns has given his Buy rating due to a combination of factors including upcoming data catalysts and financial performance. The company is expected to have significant developments in its pipeline, such as the lymphodepletion selection and futility analysis in the ALPHA3 trial, additional results from the Phase 1b expansion cohort of ALLO-316, and the initiation of a Phase 1 trial for ALLO-329 in autoimmune disease, all planned for mid-2025. These developments, particularly the potential of the DAGGER technology to address challenges in CAR T therapy, are seen as promising for the company’s future.
Financially, Allogene Therapeutics reported a net loss of $0.28 per share for 4Q24, aligning with expectations, and maintains a strong cash position of approximately $373.1M, which is projected to support operations into the second half of 2026. This financial stability, coupled with the potential for impactful data readouts, underpins the Buy rating. The valuation is based on a DCF model with specific probabilities of approval for key therapies, resulting in a price target of $8 per share. However, risks such as durability of effect, safety concerns, manufacturing challenges, and dilution risk are acknowledged.
In another report released on March 14, Canaccord Genuity also maintained a Buy rating on the stock with a $14.00 price target.