Jefferies cuts Iovance stock price target to $18, maintains Buy

On Thursday, Jefferies analyst Michael Yee adjusted the price target for Iovance Biotherapeutics (NASDAQ:IOVA) shares, lowering it to $18.00 from the previous $23.00, while reiterating a Buy rating on the stock. Currently trading at $3.82, InvestingPro analysis suggests the stock is slightly undervalued, with analyst targets ranging from $6 to $32. The revision followed Iovance’s fourth-quarter financial results, which showed mixed performance in terms of sales for its cancer treatments.

Iovance reported total revenues of $74 million, surpassing the consensus estimates of $72 million. However, sales of Amtagvi, the company’s Tumor Infiltrating Lymphocyte (TIL) therapy for metastatic melanoma, reached $49 million, falling below the consensus expectations of $54 million. The company’s revenue growth has been substantial, with InvestingPro data showing a remarkable year-over-year increase. Yee noted that while the revenue exceeded management’s guidance range of $70-75 million, the buyside expectations were leaning towards the higher end.

Looking ahead, Yee expressed optimism for the first half of 2025, anticipating that the rate of quarterly patient additions for Iovance’s therapies would increase as more treatment sites become operational. This, in turn, is expected to provide greater clarity and support management’s reiterated guidance of achieving $450-475 million in revenue by 2025. According to InvestingPro data, analysts are forecasting significant sales growth for the current year, with 13 additional key insights available to subscribers through the comprehensive Pro Research Report.

Iovance Biotherapeutics specializes in developing novel cancer immunotherapies, including Amtagvi for treating metastatic melanoma and Proleukin for interleukin-2 therapy. These therapies are part of a growing field of treatments that harness the body’s immune system to fight cancer.

Investors and stakeholders in Iovance Biotherapeutics will be watching closely as the company works to expand its treatment availability and strives to meet its projected revenue targets in the coming years.

In other recent news, Iovance Biotherapeutics reported its Q4 2024 earnings with a net loss of $0.26 per share, slightly better than the expected loss of $0.27. However, the company’s revenue of $73.7 million fell short of the anticipated $77.3 million. Despite this, Iovance’s total revenues for the quarter surpassed analysts’ estimates from Piper Sandler, which had expected $70 million. Amtagvi, a key product, generated $48.7 million in revenue for the quarter, missing the anticipated $52 million. Stifel analysts adjusted their outlook, reducing Iovance’s price target to $18 from $21, while maintaining a Buy rating, citing concerns over Amtagvi sales not meeting expectations. Piper Sandler also lowered its price target for Iovance to $6 from $7.50, maintaining a Neutral rating, reflecting skepticism about achieving the company’s 2025 revenue guidance without a significant acceleration in product launches. Iovance has reiterated its fiscal year 2025 revenue guidance of $450-475 million, expecting growth driven by its Advanced Therapy Centers and international market expansion.

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