ALX Oncology Holdings (ALXO – Research Report), the Healthcare sector company, was revisited by a Wall Street analyst today. Analyst Swayampakula Ramakanth from H.C. Wainwright maintained a Buy rating on the stock and has a $2.00 price target.
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Swayampakula Ramakanth has given his Buy rating due to a combination of factors influencing ALX Oncology Holdings’ strategic direction and financial outlook. The company has decided to focus on developing evorpacept (Evo) for breast and colorectal cancers, following feedback from the FDA that led to the discontinuation of its development in gastric and gastroesophageal cancers. This strategic pivot is expected to extend the company’s cash runway into the fourth quarter of 2026, allowing management to concentrate resources on areas where Evo’s mechanism-of-action is more promising.
Additionally, ALX Oncology is preparing to initiate several key studies, including a randomized Phase 2 study for breast cancer patients and a Phase 1b study for colorectal cancer, both set to begin in mid-2025. The company is also planning a Phase 1 study for its EGFR-targeting ADC, ALX2004, which has shown promising preclinical results. These initiatives, coupled with a revised financial model that anticipates significant revenue growth from Evo’s potential launch in the U.S. by 2032, underpin Ramakanth’s optimistic outlook and Buy rating for ALX Oncology Holdings.
Ramakanth covers the Healthcare sector, focusing on stocks such as Corcept Therapeutics, ImmunoPrecise Antibodies, and IN8bio. According to TipRanks, Ramakanth has an average return of -0.1% and a 34.93% success rate on recommended stocks.
In another report released on April 28, Piper Sandler also maintained a Buy rating on the stock with a $9.00 price target.