Citi maintains buy rating on Allogene stock following ASCO data
Investing.com
Published Jun 02, 2025 05:42PM ET
On Monday, Citi analysts reiterated their Buy rating for Allogene Therapeutics Inc . (NASDAQ: NASDAQ:ALLO), maintaining a price target of $4.00. Currently trading at $1.28, the stock has shown resilience with a 10.4% gain over the past week, though it remains significantly below its 52-week high of $3.78. According to InvestingPro data, analyst targets range from $3 to $14, reflecting diverse market opinions. This decision follows the company's presentation of updated Phase 1b TRAVERSE data at ASCO™25 for ALLO-316, an allogeneic CD70-directed CAR-T therapy. The data was collected from 20 patients with CD70+ renal cell carcinoma (RCC).
The updated data aligns with previous findings from SITC™24, showing that approximately 25% of CD70+ patients overall, and 30% of those with high tumor proportion scores (TPS), achieved a confirmed objective response rate (ORR). The results indicate that ALLO-316 continues to show meaningful efficacy and a manageable safety profile in CD70+ RCC, which compares favorably to existing benchmarks. While the company's overall financial health score is rated as 'FAIR' by InvestingPro , its strong liquidity position is evidenced by a current ratio of 9.71.
Citi analysts highlighted Allogene's recent cash preservation efforts aimed at prioritizing the clinical execution of the ALPHA3 study for cema-cel in first-line minimal residual disease-positive large B-cell lymphoma (LBCL). This strategy is expected to extend the company's financial runway into the second half of 2027. InvestingPro analysis reveals the company holds more cash than debt on its balance sheet, though it's currently burning through cash rapidly - crucial insights for investors monitoring the company's financial sustainability.
Looking ahead, Allogene plans to conduct an interim futility analysis and select a lymphodepletion regimen for cema-cel in the ALPHA3 study during the first half of 2026. This development is anticipated to be the next potential value inflection point for the company's shares.
Allogene's strategy may include pursuing partnerships for ALLO-316, as the company focuses on advancing its clinical programs and optimizing its financial resources.
In other recent news, Allogene Therapeutics reported a net loss of $59.7 million for the first quarter of 2025, which equates to a loss of $0.28 per share, closely aligning with analysts' expectations of $0.2864 per share. The company is actively expanding its ALPHA3 trial internationally, which could influence future growth. Meanwhile, Citizens JMP downgraded Allogene's stock from Market Outperform to Market Perform due to delayed timelines for its ALPHA3 development and uncertainties regarding enrollment. This downgrade reflects concerns over the extended development schedule and lack of near-term milestones. On a positive note, Allogene's ALLO-316 program showed promising results in treating renal cell carcinoma, with a 31% confirmed overall response rate in a Phase 1 study. H.C. Wainwright reaffirmed a Buy rating for Allogene, citing the potential of its ongoing clinical programs. Despite strategic cost-realignment initiatives, the company maintains a strong cash position of $335.5 million. These developments highlight Allogene's ongoing efforts to advance its clinical trials and manage financial sustainability.
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Written By: Investing.com
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