Analyst Mitchell Kapoor from H.C. Wainwright reiterated a Hold rating on Lyell Immunopharma (LYEL – Research Report) and keeping the price target at $1.00.
Mitchell Kapoor has given his Hold rating due to a combination of factors surrounding Lyell Immunopharma’s current developments and market positioning. The recent RMAT designation for LYL314 is a positive development, indicating active FDA support for innovative therapies. However, Kapoor remains cautious as the data from the ongoing Phase 1/2 trials are still maturing, with pivotal data expected in mid to late 2025.
Despite the promising regulatory progress, the competitive landscape for CAR-T therapies remains challenging. The efficacy differentiation of LYL314 has narrowed compared to established therapies like Yescarta, which sets a high bar for new entrants. The valuation employs a DCF methodology with a 45% probability of approval, reflecting both the potential and the risks associated with LYL314’s development. Kapoor’s Hold rating reflects a balanced view of these opportunities and challenges, maintaining a cautious stance until more robust data is available.
Based on the recent corporate insider activity of 10 insiders, corporate insider sentiment is positive on the stock. This means that over the past quarter there has been an increase of insiders buying their shares of LYEL in relation to earlier this year.