Celldex stock price target lowered to $62 at Canaccord on EoE program halt

Investing.com - Canaccord Genuity lowered its price target on Celldex Therapeutics (NASDAQ:CLDX) to $62.00 from $64.00 on Wednesday, while maintaining a Buy rating on the stock. The biotech company, currently trading at $24.02 with a market capitalization of $1.6 billion, has shown strong returns over both three-month and five-year periods, according to InvestingPro data.

The price target reduction follows Celldex’s decision to discontinue its eosinophilic esophagitis (EoE) program after a Phase II study showed no improvements in clinical outcomes. The study was investigating whether mast cell depletion would affect clinical outcomes in EoE patients.

Canaccord noted that the EoE indication only represented approximately $2 of its previous $64 price target, explaining the modest reduction. The firm has removed the EoE program from its financial model while maintaining its estimates for Celldex’s other programs.

The company’s focus remains on its lead programs in chronic spontaneous urticaria (CSU) and chronic inducible urticaria (CIndU), which continue to be the primary value drivers for investors according to Canaccord’s analysis.

Celldex management indicated during a conference call that the company is exploring potential additional indications and expects to provide updates in 2026.

In other recent news, Celldex Therapeutics announced that its experimental drug, barzolvolimab, did not improve clinical symptoms in patients with eosinophilic esophagitis (EoE), despite successfully depleting mast cells in a Phase 2 study. This outcome led to Wells Fargo (NYSE:WFC) reducing its price target for Celldex to $38.00, although the firm maintained an Overweight rating. Similarly, H.C. Wainwright lowered its price target to $42.00 from $50.00, citing the removal of EoE from projected indications and adjustments to the share count.

On a more positive note, Celldex reported favorable long-term data for barzolvolimab in treating chronic spontaneous urticaria (CSU), with benefits lasting through 76 weeks of treatment. This data was presented at the European Academy of Allergy and Clinical Immunology conference, where improvements in CSU and quality of life measures were highlighted. H.C. Wainwright maintained its $50.00 price target for Celldex following these findings, reiterating a Buy rating.

The recent developments underscore the mixed outcomes for Celldex’s barzolvolimab, with successes in CSU treatment contrasting with setbacks in EoE trials.

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