In a report released today, Robert Burns from H.C. Wainwright reiterated a Hold rating on MacroGenics (MGNX – Research Report), with a price target of $2.00.
Robert Burns has given his Hold rating due to a combination of factors impacting MacroGenics. The discontinuation of the vobra duo development, following the Phase 2 TAMARACK trial results, was a significant factor. The trial outcomes showed limited progression-free survival benefits, which aligned with previous data, leading to the decision to halt further development.
Additionally, MacroGenics is facing financial challenges, with a reported net loss for 2024 that exceeded expectations, and projections for 2025 indicating continued losses. Despite these setbacks, the company has a cash reserve that could sustain operations into the second half of 2026. Furthermore, the valuation, based on a discounted cash flow model, suggests a firm value that supports a Hold rating, while acknowledging risks such as clinical setbacks and competitive pressures.