ADC Therapeutics price target lowered to $5 from $8 at RBC Capital

RBC Capital analyst Gregory Renza lowered the firm’s price target on ADC Therapeutics (ADCT) to $5 from $8 but keeps an Outperform rating on the shares. The firm says the company’s high efficacy for Zynlonta in DLBCL gives it confidence in its likelihood to show clinically meaningful benefits in the 2nd line LOTIS-5 study, unlocking an additional $200M+ U.S. sales opportunity, the analyst tells investors in a research note. RBC adds that ADC shares are undervalued on the balance of a largely de-risked asset with multiple expansion opportunities that can reaccelerate growth.