John Newman, an analyst from Canaccord Genuity, maintained the Buy rating on Allogene Therapeutics. The associated price target remains the same with $14.00.
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John Newman has given his Buy rating due to a combination of factors related to Allogene Therapeutics’ strategic decisions and technological advancements. The company decided to drop the FCA lymphodepletion regimen in their ALPHA3 study following a patient’s death due to a grade 5 adenovirus infection, which is believed to be linked to immunosuppression from Alemtuzumab rather than cema-cel. This move is expected to enhance safety, as the FC arm, which does not show such infections, continues to be used.
Furthermore, Allogene’s innovative dagger technology is seen as a promising long-term solution for improving the balance between efficacy and safety in allogeneic CAR-T therapies. This technology targets autoreactive CD70+ T cells and aims to reduce or eliminate the need for lymphodepletion, potentially benefiting conditions like Lupus Nephritis. These strategic adjustments and technological developments underpin Newman’s confidence in Allogene’s future prospects, leading to the Buy rating with a $14 price target.
According to TipRanks, Newman is an analyst with an average return of -4.6% and a 34.75% success rate. Newman covers the Healthcare sector, focusing on stocks such as Allogene Therapeutics, Delcath Systems, and Regeneron.