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Investing.com - H.C. Wainwright lowered its price target on Celldex Therapeutics (NASDAQ:CLDX) to $42.00 from $50.00 on Wednesday, while maintaining a Buy rating on the stock. According to InvestingPro data, analyst targets for CLDX range from $30 to $90, with the company maintaining a strong financial position with more cash than debt on its balance sheet.
The research firm cited two primary factors for the adjustment: the removal of eosinophilic esophagitis (EoE) from projected indications for the company’s barzolvolimab (CDX-0159) treatment, and an adjustment to the fully diluted share count.
H.C. Wainwright’s valuation is based on a clinical net present value model that derives its value from barzolvolimab in three lead indications, with urticaria being the primary focus.
The firm noted that its model does not include additional assets from Celldex’s pipeline or further expansion possibilities, which could provide further upside as they progress into clinical trials.
H.C. Wainwright identified potential risks to achieving the price target, including failed or inconclusive clinical trials and the possibility that Celldex might be unable to secure adequate funding to advance its drug candidates through development. InvestingPro analysis reveals additional insights about the company’s financial health and future prospects, with over 10 exclusive ProTips available for subscribers.
In other recent news, Celldex Therapeutics announced that its experimental drug barzolvolimab failed to improve clinical symptoms in a Phase 2 trial for eosinophilic esophagitis, despite successfully depleting mast cells. The trial results led Wells Fargo (NYSE:WFC) to reduce its price target for Celldex from $44.00 to $38.00, although the firm maintained its Overweight rating. Meanwhile, H.C. Wainwright reiterated its Buy rating and maintained a $50.00 price target on Celldex, following the presentation of 76-week data from a Phase 2 trial of barzolvolimab in chronic spontaneous urticaria (CSU). The data showed continued benefits through 76 weeks, extending previous findings of significant improvements in CSU. Cantor Fitzgerald also maintained an Overweight rating with a $67.00 price target, highlighting the unprecedented response rates of the CSU therapy. Celldex released positive long-term data for the skin disorder treatment, showing sustained efficacy seven months post-dosing. These developments underscore the mixed results of Celldex’s ongoing trials and analyst reactions.
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