Top U.S. Defense Stocks to Watch According to Jefferies Analysis
Investing.com - JPMorgan downgraded Allogene (NASDAQ:ALLO) from Neutral to Underweight, citing concerns about the company’s near-term outlook and recent program modifications. According to InvestingPro data, the company is quickly burning through cash, despite holding more cash than debt on its balance sheet.
The downgrade reflects JPMorgan’s belief that Allogene will underperform relative to its industry peers, with analysts noting a lack of potential upside catalysts in the near term. This aligns with InvestingPro analysis showing analysts anticipate sales decline in the current year, with the company remaining unprofitable.
A key factor in the downgrade is Allogene’s decision to remove the CD52 component from its cema-cel program following a fatal event, a change JPMorgan describes as "rational and truly unavoidable."
JPMorgan expressed concern about this modification, noting that based on historical multiple myeloma and non-Hodgkin lymphoma data, the ’647 component has been crucial for improved durability, T cell depletion, and response probability.
The bank questioned whether the modified program is "putting its best foot forward," and found unconvincing the argument that ’647 is less necessary in the Post 1L, MRD+ consolidation setting due to lower disease burden.
In other recent news, Allogene Therapeutics reported its second-quarter 2025 earnings, revealing a net loss of $50.9 million, or $0.23 per share. This performance was better than analysts’ expectations, which had projected a loss of $0.2685 per share. Alongside the earnings report, Allogene announced strategic advancements in its clinical pipeline and provided updated financial guidance. Citizens JMP has reiterated a Market Perform rating for Allogene, maintaining its stance following the earnings report. The firm noted that Allogene reaffirmed the timeline for its ALPHA3 futility analysis, which is anticipated in the first half of 2026. These developments reflect the company’s ongoing efforts in its clinical-stage endeavors.
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