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LAVA Therapeutics (LVTX)
NASDAQ:LVTX

LAVA Therapeutics (LVTX) AI Stock Analysis

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LAVA Therapeutics

(NASDAQ:LVTX)

Rating:47Neutral
Price Target:
$1.50
▲(13.64%Upside)
The most significant factor influencing LAVA Therapeutics' stock score is its weak financial performance, with ongoing losses and cash flow challenges. The valuation is poor due to negative profitability metrics. Technical analysis provides some neutral signals, but overall investor sentiment remains cautious.
Positive Factors
Clinical Trials
The LAVA-1266 study is advancing as planned and is considered a potential upside if it could achieve meaningful clinical milestones.
Financial Performance
The company reported license revenue of $5M and a net loss of $0.14 per share, better than the consensus estimate of revenue of $2.5M and a net loss of 0.30 per share.
Strategic Review
Lava's ongoing strategic review may conclude in a value-accretive outcome for the company.
Negative Factors
Lack of Supportive Data
The company's sole remaining wholly-owned clinical asset, LAVA-1266, lacks supportive clinical data.
Uncertainty in Clinical Assets
Uncertainties are generated regarding the company’s only clinical asset, LAVA-1266 for hematological malignancies, as it depends on the outcome of the strategic review.
Workforce Reduction
In February, the company announced a workforce reduction of approximately 30% and initiated a strategic review.

LAVA Therapeutics (LVTX) vs. SPDR S&P 500 ETF (SPY)

LAVA Therapeutics Business Overview & Revenue Model

Company DescriptionLAVA Therapeutics N.V., a clinical-stage immuno-oncology company, focuses on developing cancer treatments. The company, through its Gammabody platform, develops a portfolio of novel bispecific antibodies to engage and leverage the potency and precision of gamma delta T cells to elicit an anti-tumor immune response and enhance outcomes for cancer patients. Its lead clinical-stage candidates are LAVA-051, which is in Phase 1/2a clinical trial for blood cancers, including chronic lymphocytic leukemia, multiple myeloma, and acute myeloid leukemia; and LAVA-1207 that is in Phase 1/2a clinical trial for metastatic castration-resistant prostate cancer. The company is also developing other Gammabody drug candidates, which include LAVA-1223, which targets the epidermal growth factor receptor (EGFR) for the treatment of selected solid tumors, as well as LAVA-1266 and LAVA-1278, which are preclinical candidates for the treatment of various hematologic malignancies. LAVA Therapeutics N.V. has a research collaboration and license agreement with Janssen Biotech, Inc. for the potential discovery and development of multi-specific antibody products that are directed to a specified target in various fields of use. The company was incorporated in 2016 and is headquartered in Utrecht, the Netherlands.
How the Company Makes MoneyLAVA Therapeutics generates revenue primarily through collaborative agreements, licensing, and milestone payments linked to its proprietary Gammabody™ platform. The company partners with larger pharmaceutical firms to co-develop and commercialize its innovative therapies, which often involves receiving upfront payments, research funding, and potential future royalties from successfully marketed products. Additionally, LAVA might engage in research grants and government funding opportunities to support its research initiatives, further contributing to its revenue streams.

LAVA Therapeutics Financial Statement Overview

Summary
LAVA Therapeutics is navigating significant financial hurdles typical for early-stage biotech firms. With fluctuating revenue and consistent negative net income, the company struggles with profitability. The low debt usage is a positive aspect, but declining equity and persistent cash flow issues highlight the need for strategic improvement.
Income Statement
30
Negative
LAVA Therapeutics has shown erratic revenue growth, with a drop from 2022 to 2023 followed by a recovery in 2024. However, the company has consistently reported negative net income, leading to negative net profit margins. The EBIT and EBITDA margins are also negative, indicating ongoing operational challenges. Despite a gross profit margin that is positive, the firm struggles to control costs and generate profit.
Balance Sheet
40
Negative
The debt-to-equity ratio has been relatively low, indicating conservative use of debt. However, the stockholders' equity has been declining, and the equity ratio is decreasing, suggesting weakening financial stability. The return on equity remains negative, reflecting the company's inability to generate profit from shareholders' funds.
Cash Flow
35
Negative
Operating cash flow has been negative, though there was a slight improvement in 2024. Free cash flow remains negative, indicating that the company is struggling to generate cash from operations after capital expenditures. The free cash flow to net income ratio is poor, highlighting inefficiencies in converting revenue into cash.
BreakdownTTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue4.99M11.98M6.77M19.39M5.35M3.75M
Gross Profit4.76M11.52M3.29M19.39M5.35M-11.95M
EBITDA-23.68M-23.50M-40.53M-30.88M-41.02M-14.65M
Net Income-28.04M-25.11M-41.97M-31.91M-42.35M-15.93M
Balance Sheet
Total Assets71.16M80.83M101.71M143.43M157.87M25.16M
Cash, Cash Equivalents and Short-Term Investments66.56M76.58M95.57M132.87M151.01M19.43M
Total Debt312.00K5.28M6.31M5.45M5.52M5.01M
Total Liabilities45.37M53.09M50.53M57.38M23.67M15.80M
Stockholders Equity25.78M27.75M51.18M86.04M134.19M9.36M
Cash Flow
Free Cash Flow-16.42M-19.57M-41.01M3.46M-33.34M-9.81M
Operating Cash Flow-16.39M-19.54M-38.97M4.04M-32.48M-9.31M
Investing Cash Flow26.92M12.47M-17.64M9.35M-49.37M-502.00K
Financing Cash Flow-569.00K-569.00K-571.00K283.00K171.37M18.97M

LAVA Therapeutics Technical Analysis

Technical Analysis Sentiment
Positive
Last Price1.32
Price Trends
50DMA
1.30
Positive
100DMA
1.25
Positive
200DMA
1.34
Negative
Market Momentum
MACD
<0.01
Positive
RSI
52.68
Neutral
STOCH
41.94
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For LVTX, the sentiment is Positive. The current price of 1.32 is above the 20-day moving average (MA) of 1.32, above the 50-day MA of 1.30, and below the 200-day MA of 1.34, indicating a neutral trend. The MACD of <0.01 indicates Positive momentum. The RSI at 52.68 is Neutral, neither overbought nor oversold. The STOCH value of 41.94 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for LVTX.

LAVA Therapeutics Risk Analysis

LAVA Therapeutics disclosed 67 risk factors in its most recent earnings report. LAVA Therapeutics reported the most risks in the "Tech & Innovation" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks

LAVA Therapeutics Peers Comparison

Overall Rating
UnderperformOutperform
Sector (52)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
54
Neutral
$61.76M-71.64%-98.90%-177.17%
52
Neutral
$47.94M-60.44%-76.29%
52
Neutral
$7.50B0.31-61.87%2.27%17.10%1.59%
47
Neutral
$34.72M-73.11%-60.20%3.85%
46
Neutral
$43.28M-14.91%75.74%
42
Neutral
$22.99M-70.06%146.47%57.85%
41
Neutral
$35.67M-853.05%34.97%
* Healthcare Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
LVTX
LAVA Therapeutics
1.32
-0.53
-28.65%
GRCE
Grace Therapeutics
3.13
0.28
9.82%
GBIO
Generation Bio
0.34
-2.01
-85.53%
RPTX
Repare Therapeutics
1.44
-1.77
-55.14%
PYPD
PolyPid
3.50
-0.50
-12.50%
ALGS
Aligos Therapeutics
7.84
-2.46
-23.88%

LAVA Therapeutics Corporate Events

Executive/Board ChangesShareholder Meetings
LAVA Therapeutics Shareholders Approve Key Proposals in Meeting
Positive
Jun 13, 2025

On June 11, 2025, LAVA Therapeutics N.V. held its annual general meeting of shareholders, where approximately 62.1% of the company’s common shares were represented. During the meeting, shareholders approved all proposals, including the adoption of the 2024 annual accounts, the appointment of KPMG as external auditor for 2025, the release of board members from liability for 2024, and the reappointment of Jay Backstrom and James Noble as non-executive directors. These approvals reflect shareholder confidence in the company’s governance and strategic direction.

The most recent analyst rating on (LVTX) stock is a Buy with a $6.00 price target. To see the full list of analyst forecasts on LAVA Therapeutics stock, see the LVTX Stock Forecast page.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Jul 01, 2025