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Allogene shares target cut, retains buy rating

EditorAhmed Abdulazez Abdulkadir
Published 14/05/2024, 17:04
ALLO
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On Tuesday, B.Riley adjusted its price target for Allogene Therapeutics (NASDAQ:ALLO), reducing it to $7.00 from the previous $10.00, while still recommending the stock as a Buy. The revision follows Allogene's first-quarter financial report and corporate update on Monday.

The company announced the completion of an amended agreement with Servier, which broadens the rights for cema-cel to encompass the European Union member states and the UK, thus expanding the drug's market potential.

Allogene Therapeutics has outlined its strategic plans, including the commencement of the crucial ALPHA3 trial by mid-2024. Data from the Event-Free Survival (EFS) analysis is expected in 2026, and the company is targeting a Biologics License Application (BLA) submission in 2027. Additionally, Allogene is on schedule to submit an Investigational New Drug (IND) application for ALLO-329, aimed at treating autoimmune diseases, in the first quarter of 2025.

The company’s development of ALLO-329 with Dagger Technology is particularly noteworthy, as it may eliminate the need for lymphodepletion. This advancement could set Allogene apart if the treatment demonstrates comparable efficacy and duration of response to autologous CAR T therapies.

InvestingPro Insights

As Allogene Therapeutics (NASDAQ:ALLO) navigates through its strategic milestones, investors may find additional context in the latest financial metrics and analyst perspectives. According to InvestingPro, Allogene holds a market capitalization of $495.1 million and is trading at a price-to-book ratio of 0.97, suggesting that the stock may be valued near its net asset value as of the last twelve months ending Q4 2023. This could be a point of interest for value investors seeking assets potentially trading at a discount.

InvestingPro Tips indicate that analysts have revised their earnings expectations upwards for the upcoming period, signaling optimism about Allogene's future performance. Additionally, the company's liquid assets exceed its short-term obligations, providing some financial stability. However, it is also noted that Allogene is quickly burning through cash and analysts anticipate a sales decline in the current year. These contrasting insights underscore the importance of closely monitoring the company's financial health and market position.

For investors seeking a deeper dive into Allogene's financials and future prospects, there are additional InvestingPro Tips available on their platform. To access these insights and enhance your investment strategy, consider using the coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription.

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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