H.C. Wainwright maintains buy rating on Allogene stock after ASCO update

Published 02/06/2025, 12:46
H.C. Wainwright maintains buy rating on Allogene stock after ASCO update

On Monday, H.C. Wainwright analysts reaffirmed a Buy rating and maintained a $8.00 price target on Allogene (NASDAQ: ALLO) stock, significantly above its current trading price of $1.17. The stock has shown recent momentum with a 10.38% gain over the past week, according to InvestingPro data. This decision follows the company’s presentation at ASCO 2025, where updated Phase 1 results for ALLO-316 were shared. These results pertain to patients with heavily pretreated renal cell carcinoma (RCC), showing promising outcomes.

The presentation highlighted the use of Allogene’s Dagger technology, which equips AlloCAR T cells with a CD70-targeting receptor. This design aims to identify and eliminate CD70-positive host cells while preventing self-targeting. In a study involving 16 CD70+ patients, a single dose of ALLO-316 in combination with standard FC lymphodepletion achieved a 31% confirmed overall response rate (ORR). Of the five confirmed responders, four continue to show ongoing responses, with one patient in remission for over a year. InvestingPro analysis shows the company maintains a strong liquidity position with a current ratio of 9.71, though it’s currently burning through cash reserves.

The median duration of response has not been reached, suggesting the potential for extended disease control. Safety data from the trial indicated no grade 3 or higher cytokine release syndrome (CRS) or immune effector cell-associated neurotoxicity syndrome (ICANS) events at the tested dose. However, 9% of patients experienced grade 3 or higher infusion-related events, with no grade 5 adverse events reported.

Despite these encouraging results, Allogene has recently undertaken strategic cost-realignment initiatives. These efforts focus on advancing high-impact programs like the clinical development of cema-cel in the ALPHA3 trial and ALLO-329 in the RESOLUTION trial. H.C. Wainwright analysts reiterated their Buy rating, highlighting the potential of Allogene’s ongoing clinical programs. InvestingPro reveals 13 additional key insights about Allogene’s financial health and market position, available exclusively to subscribers through the comprehensive Pro Research Report, which transforms complex Wall Street data into actionable intelligence.

In other recent news, Allogene Therapeutics (NASDAQ:ALLO) reported a net loss of $59.7 million for the first quarter of 2025, translating to a loss of $0.28 per share, aligning closely with analysts’ expectations. The company maintains a strong cash position of $335.5 million. Citizens JMP downgraded Allogene Therapeutics from Market Outperform to Market Perform due to extended timelines for the ALPHA3 trial development. The firm noted the delay in lymphodepletion selection and futility analyses to the first half of 2026 as a key factor in their decision.

Allogene continues to advance its clinical trials, including the ALPHA3 trial for large B-cell lymphoma and the TRAVERSE trial for renal cell carcinoma, with presentations planned at the 2025 American Society of Clinical Oncology (ASCO) Annual Meeting. The ALPHA3 trial is exploring cemacabtagene ansegedleucel as a consolidation treatment for patients with minimal residual disease after first-line therapy. ALLO-316, another promising treatment from Allogene, has been granted Regenerative Medicine Advanced Therapy designation for advanced or metastatic CD70+ renal cell carcinoma.

Despite the challenges, Allogene is actively working to expand its clinical trials internationally, which may support future growth. The company is also focused on maintaining operational efficiency to extend its cash runway into the second half of 2027.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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