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On Friday, Citi analyst Samantha Semenkow reaffirmed a Buy rating with a price target of $8.00 on Allogene Therapeutics, Inc. (NASDAQ:ALLO), currently trading at $1.98. The stock has seen significant analyst interest, with three analysts recently revising earnings estimates upward according to InvestingPro data. Semenkow expressed a positive stance on the company’s ongoing ALPHA3 clinical study, which is assessing the efficacy of cema-cel in first-line large B-cell lymphoma (LBLC) consolidation in minimal residual disease-positive (MRD+) patients. The analyst anticipates the study to successfully pass a planned futility analysis set for mid-2025.
The optimism from Citi is partly based on recent Phase 1 ALPHA/ALPHA2 data published in the Journal of Clinical Oncology, which showed that cema-cel achieved complete response (CR) durability comparable to autologous CAR-T therapies. Notably, all patients with low tumor burden, similar to MRD+ tumor volume, reached complete response. While the company maintains a strong liquidity position with a current ratio of 8.54 and more cash than debt on its balance sheet, InvestingPro analysis indicates rapid cash burn remains a key consideration for investors. These results bolster the expectation of a favorable outcome for the pivotal ALPHA3 trial, with Citi modeling a 60% probability of success into the mid-2025 futility analysis.
Semenkow also highlighted the upcoming milestones for Allogene’s other pipeline candidates. The initiation of the Phase 1 RESOLUTION basket trial for ALLO-329 (CD19/CD70 allo CAR-T) in autoimmune diseases is targeted for mid-2025, with initial proof-of-concept data anticipated around the end of 2025. Additionally, for ALLO-316 (CD70 allo CAR-T) in renal cell carcinoma (RCC), data from the Phase 1b expansion cohort are expected by mid-2025.
Citi’s reiteration of the Buy rating and $8.00 price target reflects the firm’s high expectations for Allogene’s clinical programs. The analyst underscored the high-risk nature of the investment but remains confident in the potential success of the company’s clinical trials. The topline pivotal ALPHA3 data are projected to be available by the end of 2026. With analyst targets ranging from $3 to $14 and the stock trading near its 52-week low, detailed financial analysis is crucial. Discover comprehensive valuation metrics and 10 additional key insights about ALLO through the in-depth InvestingPro Research Report, part of our coverage of 1,400+ US stocks.
In other recent news, Allogene Therapeutics reported a narrower-than-expected loss for the fourth quarter of 2024, with an earnings per share (EPS) of -$0.28, surpassing the forecast of -$0.32. The company’s revenue forecast was estimated at $11.87 billion, although actual revenue figures were not disclosed. These results were supported by promising developments in their key programs and a robust cash position, which stands at $373 million, extending their runway into 2026. In analyst updates, Citizens JMP upgraded Allogene’s stock rating from Market Perform to Market Outperform, setting a new price target of $5.00, driven by encouraging clinical trial results for the company’s ALPHA3 therapy. The trial data published in the Journal of Clinical Oncology showed complete response rates of 100% in low disease burden patients and 82% in those with normal lactate dehydrogenase levels. Additionally, Allogene is advancing its ALLO-329 trial for Acute Inflammatory Diseases, backed by its strong financial position to support ongoing research. The analyst’s assessment includes a potential downside to $1 and an upside to $8, reflecting a range of possible outcomes for investors.
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