Analyst Emily Bodnar of H.C. Wainwright maintained a Buy rating on IO Biotech (IOBT – Research Report), with a price target of $12.00.
Emily Bodnar’s rating is based on promising developments in IO Biotech’s clinical trials, particularly the Phase 3 study of their Cylembio (IO102-IO103) in combination with pembrolizumab for 1L melanoma. The delay in topline data to the third quarter of 2025 is attributed to a slower rate of progression-free survival (PFS) events, which may suggest that patients are experiencing longer survival times, a potentially positive indicator for the treatment’s efficacy. The Phase 1 study showed a median PFS of 22.5 months with IO102-IO103 plus nivolumab, which is significantly longer than the expected 11-12 months with checkpoint inhibitors alone. This provides optimism for achieving a median PFS of at least 15 months in the Phase 3 study, which would be statistically significant.
Additionally, the completion of enrollment in the Phase 2 neoadjuvant/adjuvant basket trial of IO102-IO103 plus pembrolizumab, with data expected in 2025, presents another catalyst for the company’s stock. The trial’s focus on major pathological response, including complete and near-complete responses, could further validate the treatment’s potential. While these trials are not currently included in the financial model, they represent significant upside opportunities for IO Biotech, supporting the Buy rating.
In another report released on March 5, Morgan Stanley also maintained a Buy rating on the stock with a $6.00 price target.
Based on the recent corporate insider activity of 6 insiders, corporate insider sentiment is positive on the stock. This means that over the past quarter there has been an increase of insiders buying their shares of IOBT in relation to earlier this year.