Stifel Downgrades ALX Oncology (ALXO) to Hold, ' Too High A Price For Patience'

Stifel analyst Bradley Canino downgraded ALX Oncology (NASDAQ: ALXO) from Buy to Hold with a price target of $14.00 (from $10.00).

The analyst comments "We think ALXO’s CD47 blocker evorpacept is fully valued for the de-risked HER2+ gastric cancer development opportunity (pivotal initiates 4Q24, pending positive data (LINK) replication in June/July). If we thought this was more than a sub-$100mm market we would be more optimistic here, but prefer the sidelines until additional development plans can materialize with supportive ph1/2 data. We recognize that this downgrade is immediately before a period where the stock enters a string of successive early-stage data catalysts where this “optionality” of CD47 will be tested—blood cancers, ADC combos, checkpoint combos. However, we either see insufficient evidence to support the potential for positive data (HNSCC), or fail to see tractable development paths as a combination backbone (ADCs). Strategic interest could solve the latter, but that thesis is not straightforward given the extreme value destruction of historic CD47 deals and the relatively high number of CD47/SIRPα assets already in pharma pipelines."

For an analyst ratings summary and ratings history on ALX Oncology click here. For more ratings news on ALX Oncology click here.

Shares of ALX Oncology closed at $16.24 yesterday.

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