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On Tuesday, Craig-Hallum analyst Albert Lowe adjusted the price target for Lineage Cell Therapeutics Inc. (NYSE:LCTX) to $3.00, down from the previous $4.00, while reiterating a Buy rating on the stock. The revision follows the company’s announcement of its fourth-quarter financial results for 2024 and an update on its product pipeline. The stock, currently trading near its 52-week low of $0.48, has seen a challenging year with a decline of nearly 59% over the past 12 months. According to InvestingPro data, analyst price targets range from $2.00 to $9.00, with a strong consensus recommendation of 1.57 (where 1 is Strong Buy).
Lineage Cell Therapeutics has been actively working on its clinical programs, particularly the Phase IIa study of OpRegen in Geographic Atrophy (GA), which is being conducted by its partner Roche/Genentech. Although Roche has not provided specific timelines for the trial, the activation of a new clinical site indicates continued progress in the study.
In addition to the OpRegen study, Lineage Cell Therapeutics has launched the DOSED trial, a Phase Ib study investigating OPC1 for the treatment of spinal cord injury patients. This internal pipeline progression is a key focus for the company.
The firm’s financial position appears robust following a recent offering in November, with approximately $53.3 million in cash reserves. This capital is expected to sustain the company’s operations into the first quarter of 2027, which should cover the period until Roche is anticipated to provide further updates on the development plans for OpRegen. InvestingPro analysis shows the company maintains a healthy current ratio of 2.48, with liquid assets exceeding short-term obligations. The company operates with a moderate debt level, with a debt-to-equity ratio of just 0.04.
Lowe’s (NYSE:LOW) commentary highlighted the potential of OpRegen to revolutionize the treatment landscape for GA patients, a significant market opportunity. The analyst’s optimism about the therapy’s ability to improve vision remains a driving factor behind the continued Buy rating. However, the adjustment of the price target to $3 reflects the dilutive impact of the recent financing on the company’s valuation. InvestingPro subscribers can access additional insights, including 7 more ProTips and a comprehensive analysis of LCTX’s financial health, which currently stands at "FAIR" with an overall score of 2.5 out of 5.
In other recent news, Lineage Cell Therapeutics reported a significant increase in their Q4 2024 revenue, reaching $2.9 million, up from $2.1 million in the same quarter of the previous year. Despite the revenue rise, the company operated at a net loss of $18.6 million for the year, though this was an improvement from the $21.5 million loss in 2023. The company also noted a decrease in operating expenses by $400,000 year-over-year, contributing to the improved financial outlook. Lineage’s cash position was bolstered with $47.8 million as of December 31, 2024, and an additional $5.5 million raised in January. The company is actively advancing its cell therapy programs, including the OpRegen treatment for dry age-related macular degeneration (AMD (NASDAQ:AMD)) and the OPC1 program for spinal cord injuries. Lineage is collaborating with Roche/Genentech on the OpRegen trial, which has shown promising progress. Analysts have not provided recent upgrades or downgrades, but the company’s strategic initiatives continue to draw attention.
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