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On Tuesday, Cantor Fitzgerald reaffirmed their confidence in Celldex Therapeutics (NASDAQ:CLDX), maintaining an Overweight rating with a steady price target of $67.00. Kristen Kluska, an analyst at Cantor Fitzgerald, highlighted the accelerating growth in the eosinophilic esophagitis (EoE) market as a potential driver for the company’s future performance. According to InvestingPro data, analyst targets for CLDX range from $31 to $90, with the stock showing strong momentum with a 6.5% gain over the past week.
Kluska noted the significant increase in EoE cases over recent decades, citing the American College of Physicians’ estimate of a roughly tenfold rise in prevalence since the 1990s to early 2000s, from approximately 4-10 cases per 100,000 individuals. The analyst pointed to the greater number of clinical trials since 2006 as a contributing factor to this growth, which has led to more frequent diagnoses. With a market capitalization of $1.4 billion and a strong financial position, InvestingPro analysis shows the company holds more cash than debt and maintains healthy liquidity ratios.
The rise in gastroenterologists utilizing endoscopy and biopsy procedures was also mentioned as a reason for the discovery of more EoE cases. Kluska suggested that this trend could signify untapped potential for Celldex, as their therapies could address a growing patient population.
In addition, the analyst referred to various possible factors that could be influencing the increase in EoE prevalence. These include exposure to antibiotics and antiacid medications, cesarean births, changes in the esophageal microbiome, and other elements that researchers believe could be affecting the rise in cases.
Celldex Therapeutics’ focus on this expanding market, as underscored by Cantor Fitzgerald’s analysis, suggests a positive outlook for the company’s growth and the potential for its stock to reach the maintained price target of $67.00. For deeper insights into CLDX’s valuation and growth prospects, InvestingPro subscribers can access comprehensive analysis, including 12 additional ProTips and detailed financial metrics in the Pro Research Report.
In other recent news, Celldex Therapeutics reported first-quarter earnings with an earnings per share (EPS) of ($0.81), which did not meet the estimates of both H.C. Wainwright and the consensus, which were ($0.73) and ($0.74) respectively. The company holds a cash reserve of $673.3 million, expected to support operations through 2027. H.C. Wainwright adjusted its price target for Celldex from $80 to $50, maintaining a Buy rating, while Cantor Fitzgerald kept an Overweight rating with a $67 target, focusing on the potential of Celldex’s drug barzolvolimab in treating eosinophilic esophagitis (EoE). Morgan Stanley (NYSE:MS) also initiated coverage with an Overweight rating and a $46 price target, highlighting the promising efficacy of barzolvolimab in chronic urticaria.
Celldex is advancing its clinical programs, including Phase 3 studies for barzolvolimab in chronic urticaria and a global Phase 3 program for chronic inducible urticaria. Additionally, H.C. Wainwright reaffirmed its Buy rating and a $80 price target based on Celldex’s presentation of preclinical data on its bispecific antibody, CDX-622, at the AAAAI 2025. The data demonstrated CDX-622’s potential in neutralizing key inflammation mediators, supporting ongoing Phase 1 studies. These developments reflect Celldex’s continued focus on addressing unmet medical needs in inflammatory diseases.
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