Analyst Michael Okunewitch of Maxim Group maintained a Buy rating on Lineage Therap, retaining the price target of $3.00.
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Michael Okunewitch has given his Buy rating due to a combination of factors surrounding Lineage Cell Therapeutics’ recent developments. The company has initiated a new cell transplant therapy program, ILT1, aimed at treating Type 1 diabetes through pancreatic islet cells. This area is highly competitive, with major players like Vertex and Sana Biotechnology already showing promising clinical data. However, Lineage’s advantage lies in its scalable and cost-effective GMP manufacturing capabilities, which address a significant bottleneck in the islet cell therapy space.
Lineage’s approach to using hypoimmune cell lines, similar to Sana’s strategy, could potentially eliminate the need for immunosuppression, a common requirement in existing therapies. The company’s collaboration with Factor Biosciences further strengthens its position. Additionally, Lineage’s ability to produce a consistent supply of allogeneic, cell-based products from a single cell line may open up lucrative licensing opportunities. These factors collectively contribute to the positive outlook and the Buy rating assigned by Michael Okunewitch.
Okunewitch covers the Healthcare sector, focusing on stocks such as Lineage Therap, ATAI Life Sciences, and Longeveron. According to TipRanks, Okunewitch has an average return of -11.0% and a 35.24% success rate on recommended stocks.
In another report released yesterday, H.C. Wainwright also reiterated a Buy rating on the stock with a $9.00 price target.