Analyst Brian Cheng of J.P. Morgan maintained a Buy rating on Xencor, with a price target of $20.00.
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Brian Cheng’s rating is based on Xencor’s promising early data from their ENPP3xCD3 TCE (XmAb819) trial, despite some initial dosing preparation errors. The data presented showed encouraging signs of activity, with a 20% confirmed overall response rate at the target dose range, which aligns with expectations. Additionally, concerns about cytokine release syndrome (CRS) were alleviated, as the incidence of Grade 3 CRS was significantly lower when the product was correctly prepared.
Furthermore, Xencor’s strategic plans to address dosing issues and expand their trial, alongside their strong market opportunities and management’s clear objectives, contribute to the positive outlook. The company’s robust R&D portfolio and partnerships position them well for future growth, supporting the belief that Xencor will outperform its peers. The valuation model, which includes a price target of $20 by December 2025, reflects confidence in the company’s potential, with significant contributions expected from XmAb819 and royalty revenues.
In another report released on October 24, RBC Capital also maintained a Buy rating on the stock with a $18.00 price target.