Analyst Swayampakula Ramakanth from H.C. Wainwright reiterated a Buy rating on ALX Oncology Holdings and keeping the price target at $2.00.
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Swayampakula Ramakanth has given his Buy rating due to a combination of factors that highlight the potential of ALX Oncology Holdings. The recent clinical data presentations at major congresses have reinforced the narrative supporting the need for CD47 overexpression, which is crucial for the efficacy of ALX’s lead candidate, evorpacept. The data from the ASPEN-03 and ASPEN-06 studies demonstrated significant improvements in overall response rates, progression-free survival, and overall survival when evorpacept was used in combination with other treatments, compared to the standard therapies alone.
Additionally, ALX’s strategic plans to initiate the ASPEN-Breast Phase 2 study further strengthen the company’s position. This study aims to evaluate the combination of evorpacept with trastuzumab and chemotherapy in HER2-positive metastatic breast cancer patients, potentially identifying CD47 as a biomarker. Financially, despite reporting no revenues, the company has sufficient cash reserves to sustain operations, and the valuation analysis suggests a favorable risk-adjusted net present value. These factors collectively underpin the Buy rating, with a 12-month price target set at $2.00 per share.