MacroGenics stock initiated with Overweight rating by Barclays

Investing.com - Barclays initiated coverage on MacroGenics (NASDAQ:MGNX) with an Overweight rating and a price target of $3.00 on Wednesday. The stock, which has declined about 15% in the past week and 55% year-to-date according to InvestingPro data, is currently trading below Barclays’ target.

The research firm noted that MacroGenics currently trades at a discount to cash, which the company expects will provide runway through the first half of 2027. This observation aligns with InvestingPro data showing the company holds more cash than debt and maintains a healthy current ratio of 5.25, though it is quickly burning through its cash reserves.

Barclays highlighted that MacroGenics’ new CEO Eric Risser outlined key priorities during the second-quarter earnings update, including determining the development path for lorigerlimab (PD1xCTLA4), advancing Phase 1 antibody drug conjugate programs, and filing an Investigational New Drug application for MGC030.

The firm ascribes approximately $1 per share to MacroGenics’ entire pipeline and does not anticipate material upside from the Phase 2 LORIKEET trial update for lorigerlimab in the second half of 2025.

Barclays believes MGC026 could provide upside to MacroGenics in 2026, given shortcomings of competitor B7H3 ADC programs, noting that MGC026 is currently being evaluated in a Phase 1 dose escalation study with dose expansions in selected indications expected to begin in the second half of 2025.

In other recent news, MacroGenics has announced a significant leadership change with Eric Risser being appointed as the new President, Chief Executive Officer, and member of the Board of Directors. Risser, who previously held the position of Chief Operating Officer since 2022, succeeds Scott Koenig, who has served as President and CEO for 24 years. Koenig will remain with the company as a Director and advisor. Additionally, MacroGenics is progressing with its lorigerlimab studies, focusing on metastatic castration-resistant prostate cancer. The study, which has enrolled 150 patients, is comparing the effects of lorigerlimab plus docetaxel against docetaxel alone. In terms of market analysis, Citizens JMP analyst Silvan Tuerkcan has maintained a Market Perform rating for MacroGenics. These developments reflect the company’s ongoing strategic and operational adjustments.

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