Promising Outlook for Xencor’s XmAb942 Program Amidst Stock Decline

Xencor (XNCR – Research Report), the Healthcare sector company, was revisited by a Wall Street analyst on April 29. Analyst Eva Fortea Verdejo from Wells Fargo maintained a Buy rating on the stock and has a $33.00 price target.

Eva Fortea Verdejo’s rating is based on the promising early data from Xencor’s XmAb942 program, which suggests a potential for a quarterly maintenance dosing schedule with a favorable safety profile. The Phase 1 data indicated a long half-life and no adverse immune responses, making it an attractive candidate for further development. Additionally, the safety data showed no serious adverse events, which aligns well with the drug’s mechanism of action, providing confidence in its continued development.
Furthermore, the planned initiation of a Phase 2b study in ulcerative colitis in the second half of 2025, along with a potential indication expansion in 2026, adds to the stock’s appeal. Despite the stock’s significant decline year-to-date, Verdejo sees value in Xencor’s extensive pipeline and believes that upcoming readouts, particularly from XmAb819, could offer upside potential for the shares in the next year.

Based on the recent corporate insider activity of 32 insiders, corporate insider sentiment is negative on the stock. This means that over the past quarter there has been an increase of insiders selling their shares of XNCR in relation to earlier this year.