Arcellx price target raised to $35 from $31 at Needham

Needham analyst Gil Blum raised the firm’s price target on Arcellx (ACLX) to $35 from $31 and keeps a Buy rating on the shares. The company’s strategic collaboration with Gilead’s (GILD) Kite announced last week removes two of the most prominent investor objections he has heard from investors regarding the stock, including significant development costs and rapid cash burn along with the lack of internal manufacturing, the analyst tells investors in a research note. The near-term cash and a projected reduction in costs also provide Arcellx with strategic flexibility to develop other candidates in the company’s pipeline, Blum adds.