• hello@whatnews.in
  • Home
  • Business
  • World
  • Contact US
Home»business»JPMorgan says this biotech stock could rally 60%
business

JPMorgan says this biotech stock could rally 60%

whatnewsBy whatnewsJanuary 24, 2023No Comments2 Mins Read
Facebook Twitter LinkedIn Telegram Pinterest Tumblr Reddit WhatsApp Email
Share
Facebook Twitter LinkedIn Pinterest Email


JPMorgan has moved off the sidelines on Allogene Therapeutics , a clinical-stage immuno-oncology company the bank believes could see positive catalysts. Analyst Brian Cheng upgraded the stock to overweight from neutral. Cheng also cut his price target nearly in half to $11 from $20, but the new forecast implies the stock will gain 60.3% over the next year. “Our upgrade is a valuation call driven by upside from the current level (at an EV of ~$500mn) as we see a healthy strategic shift brewing behind-the-scenes to place a heavier focus on the lead CD19 franchise,” he said in a note to clients. The CD19 franchise is centered around studies for relapsed or refractory non-Hodgkin lymphoma. He said they are worth watching, especially considering a trial is expected in the first half of the year. Cheng also said concern over weak sales could be over-blown if the company can move the timeline forward. Chen noted that Allogene’s current valuation justifies an upside call because of the fundamentals and catalysts coming. The stock gained 14% on Tuesday following the call and is up more than 24% this year. That marks a turn from 2022, when the stock lost 57.8%. The analyst noted that one concern about the company is the state of its BCMA franchise, which is focused on treatments for relapsed and refractory multiple myeloma. Based on discussions with management, Cheng said he believes the company is considering a strategic change and re-evaluating the manufacturing process. He said the company could improve sentiment among pessimists if the next step for BCMA yields positive results. Cheng said changes to BCMA would allow the company to remove a key overhang and then focus on its CD19 work. There will also be updates on a different project focused on renal cell carcinoma in the second half of the year that are also watching, he said. — CNBC’s Michael Bloom contributed to this report.



Source link

Post Views: 2
Allogene Therapeutics Inc Biotech Biotech and Pharmaceuticals business news Investment strategy JPMorgan JPMorgan Chase & Co Rally Stock Stock markets
Share. Facebook Twitter Pinterest LinkedIn Tumblr Telegram Email
Previous ArticleWhy I don’t care about this year’s Oscar nominations
Next Article MGIC Investment declares $0.10 dividend (NYSE:MTG)
whatnews
  • Website

Related Posts

Gold prices muted as Fed week kicks off

January 30, 2023

LIC still has big gains on Adani investments

January 30, 2023

Electricity crisis continues to undermine economic growth: S. Africa Prez

January 30, 2023
Add A Comment

Leave A Reply Cancel Reply

Subscribe to Updates

Get the latest sports news from SportsSite about soccer, football and tennis.

Advertisement
About Us
Privacy Policy
Contact Us
© Copyright 2023. All rights reserved.