JonesTrading analyst Soumit Roy has reiterated their neutral stance on ADAP stock, giving a Hold rating on May 14.
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Soumit Roy has given his Hold rating due to a combination of factors impacting Adaptimmune Therapeutics. The company is making progress in its strategic initiatives, such as cost reductions and the commercialization of Tecelra, alongside plans for a rolling BLA submission for lete-cel by the end of 2025. Despite these positive developments, the small addressable market for their products is limiting the potential for significant investor interest.
Moreover, while the company has reported a promising start with product revenue and expects to treat a modest number of patients in 2025, the ongoing capital overhang remains a concern. Until Adaptimmune can implement further financial strategies or partnerships to address this issue, the recommendation remains a Hold. The company’s strong operational metrics, such as a 100% manufacturing success rate and no reimbursement denials, are encouraging, but the financial uncertainties necessitate caution.
In another report released on May 14, Wells Fargo also maintained a Hold rating on the stock with a $1.00 price target.