Stifel maintains Buy on Iovance stock with $21 target

Published 27/01/2025, 16:18
Stifel maintains Buy on Iovance stock with $21 target

On Monday, Stifel analysts maintained a Buy rating on Iovance Biotherapeutics (NASDAQ:IOVA) with a steady price target of $21.00. According to InvestingPro data, the stock currently trades at $6.40, with analyst targets ranging from $10 to $34, suggesting significant potential upside. The company maintains a "Fair" overall financial health score, despite recent market challenges. The endorsement follows a panel discussion during Stifel's NYC Biotech Doc Days, which featured Dr. Anna Pavlick of Weill Cornell. Dr. Pavlick shared insights into melanoma treatment and her experience with Iovance's Amtagvi. Her center, having become an Authorized Treatment Center (ATC) in late summer, is currently treating approximately three Amtagvi patients monthly. Dr. Pavlick anticipates the potential to double this rate within the next six months, although she noted some reservations about the necessity for such an increase.

The discussion also touched on the broader perspective of Iovance's stock, addressing investor concerns regarding the company's ability to meet its 2025 financial guidance. InvestingPro analysis reveals that analysts anticipate substantial revenue growth of 135% for FY2024, though the company is currently burning through cash rapidly. With a strong current ratio of 4.22, the company holds more cash than debt on its balance sheet, potentially providing flexibility for its growth initiatives. The analysts at Stifel believe that despite the complexities introduced by forecasting sales for Proleukin, Iovance's guidance is achievable. This outlook remains positive even with the assumption of a potential decline in Proleukin sales, which the analysts consider a conservative estimate.

In a recent meeting with Iovance management, the company countered the expectation of a Proleukin sales downturn in the first half of 2025. Management instead suggested that sales of Proleukin are more likely to remain stable, providing a more optimistic scenario than the one factored into Stifel's projections.

The reiteration of the Buy rating and the $21.00 price target on Iovance stock reflects Stifel's confidence in the company's performance and market strategy. With a market capitalization of $1.95 billion, Iovance shows promise despite current challenges. For deeper insights into Iovance's financial health and growth prospects, InvestingPro subscribers can access comprehensive analysis including 8 additional ProTips and detailed financial metrics in our exclusive Pro Research Report. The firm's analysis takes into account the improvements to payer reimbursement and turnaround times for Amtagvi treatments, as well as the robust dialogue with management regarding sales forecasts for the company's products.

In other recent news, Iovance Biotherapeutics has been in the spotlight following Goldman Sachs' reaffirmation of their Buy rating on the company's stock, after a meeting with the company's management. The focus was on the 2025 outlook for Amtagvi, Iovance's melanoma treatment, which is entering its inaugural full year of sales. Iovance has maintained its revenue guidance for fiscal year 2024 at $160-165 million, aligning with Goldman Sachs' estimate of $162 million, reflecting a successful Amtagvi launch.

In more recent developments, Iovance reported a third-quarter product revenue of $58.6 million, outperforming the forecasted $53 million to $55 million. Amtagvi contributed $41 million, with 146 patients receiving treatment since April, indicating a projected $75 million in revenue from the drug in 2024.

Furthermore, Iovance is expanding globally, with regulatory submissions in various countries and potential approvals in the EU and UK by late 2025. Goldman Sachs noted that investors are keen to understand the long-term profitability of the launch and the feasibility of the fiscal year 2025 revenue guidance, which stands at $450-475 million.

Finally, Goldman Sachs is closely watching for pipeline updates that could bolster the credibility of Iovance's TIL platform, including registrational data from studies in second-line non-small cell lung cancer and second-line endometrial cancer, both anticipated in 2025.

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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