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On Friday, Citizens JMP analyst Reni Benjamin raised the stock rating for Allogene Therapeutics (NASDAQ:ALLO), currently trading at $1.89 with a market capitalization of $396 million, from Market Perform to Market Outperform, coupled with a new price target of $5.00. The upgrade comes amid promising clinical trial results for the company’s ALPHA3 therapy. According to InvestingPro data, seven analysts have recently revised their earnings expectations upward for the upcoming period.
Allogene’s recent clinical data, which was published in the Journal of Clinical Oncology (JCO), showed complete response (CR) rates of 100% in low disease burden patients and 82% in those with normal lactate dehydrogenase (LDH) levels. These results have bolstered confidence in the potential success of ALPHA3, leading to the analyst’s positive outlook. For deeper insights into Allogene’s financial health and growth prospects, InvestingPro subscribers can access comprehensive research reports and 10+ additional ProTips.
The firm’s analysis suggests a projection of approximately $1 billion in risk-adjusted sales for Allogene’s cema-cel at its peak by the year 2033. The ALPHA3 trial is anticipated to undergo a futility assessment in mid-2025, an event that is being closely monitored by investors and industry experts alike.
In addition to ALPHA3, Allogene is also evaluating ALLO-329 in a trial for Acute Inflammatory Diseases (AID) with either cyclophosphamide alone or no lymphodepletion regimen (LD). The company’s robust cash position, reported at $373 million, supports its ongoing research and development efforts. InvestingPro analysis shows the company maintains a strong current ratio of 9.35, indicating solid short-term liquidity, though it’s currently burning through cash at a significant rate.
The analyst’s assessment includes a bear case scenario with a downside potential to $1 and a bull case that sees the stock’s value potentially soaring to $8, indicating a significant range of possible outcomes for investors. The current upgrade and price target reflect an optimistic view of Allogene’s prospects and its position in the market. Based on InvestingPro’s Fair Value analysis, the stock appears to be trading below its intrinsic value, potentially offering an attractive entry point for investors.
In other recent news, Allogene Therapeutics reported a notable improvement in its Q4 2024 earnings, with an EPS of -$0.28, surpassing the anticipated -$0.32. Although the exact revenue figures were not disclosed, the company had forecasted $11.87 billion. The positive earnings surprise was attributed to advancements in key programs and a strong cash reserve of $373.1 million, which extends their financial runway into 2026. Allogene’s strategic collaborations and manufacturing expansions are also moving forward, enhancing its operational capabilities. Analyst firms have not provided any recent upgrades or downgrades for Allogene, but the company’s strong cash position and strategic direction suggest a stable outlook. The company anticipates significant milestones in its programs, including a potential BLA submission for SemaCell by 2027. Allogene continues to focus on its allogeneic CAR T therapies, with its key programs nearing critical milestones in oncology and autoimmune diseases. These developments reflect Allogene’s ongoing efforts to maintain its competitive edge in the biotechnology sector.
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