Allogene Therapeutics: Strategic Cash Management and ALPHA3 Potential Drive Buy Rating Amid Clinical Delays

Analyst Samantha Semenkow of Citi maintained a Buy rating on Allogene Therapeutics (ALLO – Research Report), reducing the price target to $4.00.

Samantha Semenkow’s rating is based on a combination of factors that highlight both challenges and potential opportunities for Allogene Therapeutics. Despite the delays in clinical timelines for key projects like ALPHA3 and ALLO-329, which have extended the time to value realization, the company has implemented strategic cash preservation measures that extend its financial runway into the second half of 2027. This financial strategy partially offsets the negative impact of the delays and supports the Buy rating.
Furthermore, the current trading value of Allogene’s stock is below its cash value, indicating that the market is not currently assigning any value to its pipeline. Semenkow believes that the ALPHA3 study is likely to succeed, which is a significant factor in maintaining the Buy rating. There is also potential upside if a partnership emerges for ALLO-316 or if favorable regulatory commentary on cell therapy arises. These elements, combined with the belief in the potential success of ALPHA3, underpin the Buy/High Risk rating despite the challenges faced by the company.

In another report released yesterday, Canaccord Genuity also maintained a Buy rating on the stock with a $14.00 price target.