Xencor’s Promising Developments in IBD Treatment Drive Buy Rating

William Blair analyst Matt Phipps has maintained their bullish stance on XNCR stock, giving a Buy rating today.

Matt Phipps has given his Buy rating due to a combination of factors surrounding Xencor’s recent developments. The company has announced promising Phase I clinical data for XmAb942, an anti-TL1A antibody, which shows a potentially differentiated profile in treating inflammatory bowel disease (IBD). The results from the study indicate high potency and a long half-life, which supports a convenient 12-week dosing interval, making it a competitive candidate in the IBD treatment landscape.
Furthermore, Xencor is advancing to a Phase IIb study for XmAb942 in patients with moderate-to-severe ulcerative colitis, expected to begin in the latter half of 2025. Compared to other TL1A-targeting drugs in development, XmAb942’s extended dosing interval and potency stand out. These factors, combined with the potential for significant partnership deals following the Phase IIb results, underpin Phipps’s optimistic outlook and Buy rating for Xencor’s stock.

In another report released today, Piper Sandler also reiterated a Buy rating on the stock with a $30.00 price target.