Morgan Stanley sets Celldex stock overweight with $46 target

Published 20/03/2025, 09:36
Morgan Stanley sets Celldex stock overweight with $46 target

On Thursday, Morgan Stanley (NYSE:MS) initiated coverage on Celldex Therapeutics (NASDAQ:CLDX) with an Overweight rating and a price target of $46.00. Currently trading at $19.95, the stock has attracted strong analyst support, with InvestingPro data showing analyst price targets ranging from $36 to $90, suggesting significant upside potential. The firm’s analysts highlighted Celldex’s focus on developing antibodies for inflammatory conditions, with particular emphasis on its lead candidate, barzolvolimab (Barzol), an anti-KIT monoclonal antibody. In Phase 2 studies for chronic urticaria, a condition driven by mast cells, barzolvolimab demonstrated what Morgan Stanley believes to be a potentially market-leading efficacy profile.

Despite the promising results, Celldex Therapeutics’ stock has fallen sharply, with InvestingPro data showing a 52% decline over the past six months. Currently trading near its 52-week low of $18.61, the decline is attributed to concerns about side effects associated with anti-KIT monoclonal antibodies, which are not unique to barzolvolimab, and the growing competitive landscape in urticaria drug development.

Morgan Stanley’s Overweight rating is based on several factors. Firstly, there is a significant unmet need in chronic urticaria that requires multiple lines of therapy, which, according to expert opinion, justifies the risk/benefit profile of the treatment. Secondly, the potential for barzolvolimab to be used in other mast cell-mediated diseases, and the development of a next-generation bispecific antibody, are seen as promising. InvestingPro analysis reveals the company maintains a strong balance sheet with more cash than debt and a healthy current ratio of 18.9x, providing financial flexibility to advance its pipeline. Discover 10+ additional exclusive insights and detailed financial metrics with InvestingPro’s comprehensive research report. Lastly, the firm views the risk/reward balance as being skewed to the upside, with data catalysts in chronic urticaria and other conditions like eosinophilic esophagitis expected to emerge in the coming 12 months.

Celldex’s commitment to addressing the unmet needs in chronic urticaria through barzolvolimab and its pipeline potential in alternative mast cell-mediated diseases have been key to Morgan Stanley’s positive outlook. The firm anticipates that the upcoming data releases could significantly impact the stock’s performance.

In other recent news, Celldex Therapeutics has garnered attention following its presentation at the American Academy of Allergy, Asthma, and Immunology 2025. The company showcased promising preclinical data on its bispecific antibody, CDX-622, which targets inflammation and fibrosis mediators. This has led H.C. Wainwright to maintain a Buy rating and an $80 price target for Celldex, highlighting the potential of CDX-622 in treating inflammatory conditions. Guggenheim also reaffirmed its Buy rating with a $90 price target, noting Celldex’s competitive position in the chronic spontaneous urticaria (CSU) treatment market.

Meanwhile, Jasper Therapeutics reported initial results from its BEACON study on briquilimab for CSU, prompting Oppenheimer to maintain an Outperform rating and an $80 price target. The study indicated a significant reduction in urticaria activity scores, with Jasper planning to expand its study cohorts. Stifel has expressed a positive outlook on both Celldex and Third Harmonic (NASDAQ:HLIT) Bio, citing their leadership potential in mast cell disease treatments. Stifel noted the importance of tryptase reduction and highlighted Celldex’s focus on improving the safety profile of its treatments. These developments reflect ongoing advancements and strategic positioning within the biopharmaceutical industry.

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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