Arcellx initiated with a Buy at Stifel

Stifel analyst Benjamin Burnett initiated coverage of Arcellx (ACLX) with a Buy rating and $43 price target. The firm thinks Johnson & Johnson (JNJ) and Legend Biotech’s (LEGN) Carvykti autologous BCMA-targeting CAR-T "sets the efficacy bar for the class" in multiple myeloma, but that manufacturing challenges have limited adoption and opened the door for competitors like Arcellx. The company’s lead product, CARTddBCMA, which is partnered with Gilead (GILD), has shown comparable efficacy to Carvykti in "arguably a tougher patient population," the analyst added.