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Wednesday, Stifel analysts adjusted their stance on MacroGenics (NASDAQ:MGNX) stock, reducing the price target from $6.00 to $5.00 while maintaining a Hold rating. Currently trading at $1.58, the stock has experienced significant volatility, falling nearly 60% over the past six months. According to InvestingPro analysis, MacroGenics appears undervalued at current levels, with analysts setting price targets ranging from $2.00 to $8.00. The decision followed the company’s earnings release and corporate update. Stifel’s analysts reiterated their Hold rating, indicating a cautious outlook on the stock’s immediate future.
The analysts highlighted the upcoming clinical update from the LORIKEET trial, which is evaluating docetaxel with or without lorigerlimab in patients with chemotherapy-naïve metastatic castration-resistant prostate cancer (mCRPC). The trial has fully enrolled 150 patients, and results are expected in the second half of 2025. This update is seen as a potential significant catalyst for MacroGenics’ stock, especially since the current market valuation of $99.7 million does not reflect any value from this trial. InvestingPro data shows the company maintains a healthy current ratio of 3.28, with liquid assets exceeding short-term obligations, providing financial flexibility during the trial period.
Additionally, the initiation of patient dosing in the Phase 2 LINNET trial, which involves single-agent lorigerlimab in patients with prostate cancer and gastric cancer, is intended to expand the potential market for this treatment. Positive results could lead to strategic partnerships, providing MacroGenics with non-dilutive capital. This is particularly important as InvestingPro analysis indicates the company is currently burning through cash, with negative free cash flow of $72.4 million in the last twelve months. Get access to 10+ additional ProTips and comprehensive financial analysis through InvestingPro’s detailed research reports.
Stifel’s analysts also commented on MacroGenics’ earlier-stage pipeline, noting the importance of preliminary dose-escalation data from MGC026, a B7-H3-targeting agent. This data is expected to competitively profile the asset and validate the novel linker/payload technology used in other clinical and preclinical antibody-drug conjugate (ADC) candidates like MGC028 and MGC030.
The updated financial model from Stifel reflects revised financing assumptions in light of these developments. The analysts’ report underlines the importance of the forthcoming clinical data in shaping the investment outlook for MacroGenics.
In other recent news, MacroGenics has reported its fourth-quarter 2024 earnings, revealing a better-than-expected loss per share of -0.07, compared to the anticipated -0.40. The company also announced a significant revenue increase to $49.4 million, surpassing the forecasted $29.19 million. These results contributed to a total revenue of $150 million for 2024, up from $58.7 million in 2023, driven by collaborative agreements. Despite the positive earnings report, MacroGenics disclosed that it would halt further development of its drug candidate vobra duo, following Phase 2 trial data that did not meet expectations. This decision led H.C. Wainwright to adjust its price target for MacroGenics’ stock to $2, maintaining a Neutral rating. Stifel analysts continue to hold a Hold rating with a $6 price target, while Citizens JMP maintains a Market Outperform rating, noting the potential impact of upcoming clinical trial results for other drug candidates. The company remains focused on advancing its diverse clinical pipeline, with several key developments expected in the latter half of 2025.
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