Xencor stock price target lowered to $15 from $32 at RBC Capital

Investing.com - RBC Capital has lowered its price target on Xencor, Inc. (NASDAQ:XNCR) to $15.00 from $32.00 while maintaining an Outperform rating on the stock. The biotech company’s shares, currently trading at $7.51, have declined over 67% year-to-date, according to InvestingPro data.

The firm cited model updates and management conversations as factors behind the significant reduction in its target, though it continues to view the current share price as undervaluing key aspects of Xencor’s business.

RBC Capital highlighted three main pillars of Xencor’s business that it believes are underappreciated: the IBD program led by ’942 with potential convenience advantages, an immunology program led by plamotamab, and a bispecific platform in oncology where upcoming ENPP3 data could reduce risk.

The firm acknowledged several risks facing Xencor, including limited data across its programs, fewer near-term catalysts outside oncology that could drive growth, and the need to progress development quickly in competitive landscapes.

Despite the substantially reduced price target, RBC Capital indicated it would be a buyer of Xencor shares ahead of upcoming data releases and for long-term optionality, maintaining that the stock remains undervalued at current levels.

In other recent news, Xencor, Inc. has announced the appointment of Raymond (NSE:RYMD) J. Deshaies, Ph.D., to its board of directors. Dr. Deshaies brings a wealth of experience from his previous role as senior vice president of global research at Amgen Inc (NASDAQ:AMGN). At Amgen, he was instrumental in nominating over 50 clinical candidates and expanding capabilities in multispecific drug discovery. His expertise in generative protein design for biologics discovery is expected to contribute significantly to Xencor’s strategic direction. This appointment is part of Xencor’s ongoing efforts to enhance its leadership team with experienced professionals from the biotech industry. The company did not announce any recent earnings or revenue results, mergers, or analyst upgrades or downgrades. These recent developments are part of Xencor’s broader strategy to strengthen its position in the biotech sector.

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