MacroGenics (MGNX) PT Lowered to $6 at Stifel
Stifel analyst Stephen Willey lowered the price target on MacroGenics (NASDAQ: MGNX) to $6.00 (from $7.00) while maintaining a Hold rating.
The analyst comments "Our Hold-rated thesis on MGNX shares remains unchanged following management’s earnings announcement and corporate update. While the presentation of updated vobra-duo safety/efficacy data from the P2 TAMARACK trial at ESMO likely represents the next major event for the stock, we believe the recently-announced discontinuation of all TAMARACK patient dosing (see here), combined with previously-reported safety data confirming the existence of a very narrow (and potentially non-navigable) therapeutic index (see here), makes it challenging to envision the existence of a viable single-agent registrational strategy. We’re inclined to believe the next-generation B7-H3 targeting ADC (MGC026) will now be prioritized and note the novel linker/payload technology has already been clinically validated (see Innovent’s IBI343). We view the recent $100M retifanlimab development milestone as a nice upside surprise and wouldn’t overlook the 1H25 LORIKEET trial update as a potential catalyst. Reduced target price (now $6) mostly reflects decreases/increases to our vobra-duo/retifanlimab POS assumptions."