Analyst Arthur He CFA from H.C. Wainwright reiterated a Hold rating on LAVA Therapeutics and decreased the price target to $1.24 from $1.50.
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Arthur He CFA has given his Hold rating due to a combination of factors related to the acquisition of LAVA Therapeutics by XOMA. The deal, which involves a cash-and-CVR agreement, values LAVA at a price between $1.16 and $1.24 per share, contingent on the company’s net cash position at closing. This acquisition includes a contingent value right that allows current shareholders to benefit from future proceeds of LAVA’s partnered assets.
The strategic review process leading to the acquisition has been approved by LAVA’s Board of Directors, and the transaction is expected to conclude in the fourth quarter of 2025. In response to this development, Arthur He CFA has adjusted the price target to $1.24, aligning with the upper limit of the cash component of the deal. The Hold rating reflects the current valuation and the associated risks, including clinical, regulatory, and commercial uncertainties, among others.
In another report released today, Jefferies also downgraded the stock to a Hold with a $1.50 price target.