On Thursday, BMO (TSX:BMO) Capital Markets maintained its Outperform rating on shares of Xencor, Inc. (NASDAQ: XNCR) and increased the price target to $34 from the previous $32. The adjustment follows Xencor's recent business update and third-quarter financial results for 2024, where the company reported revenues of $10.7 million, including non-cash royalty revenue.
In its business update, Xencor provided several pipeline updates, which included new clinical development plans for its therapeutic candidates. Notably, the company discussed plamotamab (CD20 x CD3) and XmAb657 (CD19 x CD3) for autoimmune indications, as well as XmAb942 (anti-TL1A) for the treatment of inflammatory bowel disease (IBD).
The firm's analyst highlighted Xencor's execution period for its internal pipeline and expressed a positive outlook on the recent updates for autoimmune treatments. The continued progress in oncology and the potential for the antibody platform were also factors contributing to the maintained Outperform rating.
The business update and financial results demonstrate Xencor's ongoing efforts to advance its pipeline of therapeutic candidates. With several updates in clinical development plans, the company continues to make strides in both autoimmune and oncology sectors.
Xencor's strategic focus on its internal pipeline development and the latest clinical advancements have led to a favorable view from BMO Capital Markets, resulting in the raised price target of $34. The company's stock continues to be monitored by investors as it progresses with its promising candidates in various stages of development.
In other recent news, Xencor Inc (NASDAQ:XNCR). is set to begin human trials for its XmAb942 antibody, targeting inflammatory bowel diseases. The Phase 1 study is expected to start in the last quarter of 2024, with initial data projected for the first half of 2025. On the financial front, Xencor has announced a public stock offering priced at $18 per share, aiming to raise approximately $175 million.
In another development, Xencor board member, Dagmar Rosa-Bjorkeson, will depart the company to pursue new business opportunities. Meanwhile, RBC (TSX:RY) Capital Markets has increased its price target for Xencor to $34, maintaining an Outperform rating, while JPMorgan (NYSE:JPM) has upheld a bullish stance with a $27 target. However, Barclays (LON:BARC) reaffirmed its underweight rating on the company. These are recent developments in the company's journey.
InvestingPro Insights
Recent data from InvestingPro sheds additional light on Xencor's financial position and market performance. The company's market capitalization stands at $1.62 billion, reflecting investor confidence in its pipeline and potential. Notably, Xencor has demonstrated strong short-term market performance, with a 16.43% price return over the past month and an impressive 44.46% return over the last three months, aligning with the positive outlook expressed by BMO Capital Markets.
However, investors should be aware of some challenges. InvestingPro Tips highlight that analysts anticipate a sales decline and a drop in net income for the current year. This aligns with the reported revenue of $85.16 million for the last twelve months, representing a significant year-over-year decline of 41.37%.
On a positive note, Xencor maintains a strong balance sheet, with InvestingPro Tips indicating that the company holds more cash than debt and its liquid assets exceed short-term obligations. This financial stability could provide Xencor with the flexibility needed to continue advancing its promising pipeline.
For investors seeking a more comprehensive analysis, InvestingPro offers 5 additional tips that could provide valuable insights into Xencor's financial health and market position.
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