In a report released today, Robert Burns from H.C. Wainwright reiterated a Buy rating on ADC Therapeutics, with a price target of $8.00.
Elevate Your Investing Strategy:
- Take advantage of TipRanks Premium at 55% off! Unlock powerful investing tools, advanced data, and expert analyst insights to help you invest with confidence.
Robert Burns has given his Buy rating due to a combination of factors related to ADC Therapeutics’ ongoing clinical trials and financial projections. The company has updated its timeline for the LOTIS-5 trial, which is a Phase 3 confirmatory trial for ZYNLONTA in combination with rituximab for patients with relapsed or refractory diffuse large B-cell lymphoma. The results are now expected in the first half of 2026, and management anticipates potential FDA approval based on these results by the first half of 2027.
From a valuation perspective, Burns uses a discounted cash flow approach, assigning high probabilities of approval for ADCT-402 in certain lymphoma treatments. The analysis includes a 12% discount rate and other financial metrics, leading to a firm valuation of $909 million and a price target of $8 per share. Despite risks such as potential delays in approval and market uptake, Burns maintains a positive outlook on the stock.