Celldex initiated with an Underweight at Wells Fargo

Wells Fargo analyst Derek Archila initiated coverage of Celldex with an Underweight rating and $21 price target. The analyst believes Celldex’s barzolvolimab will be efficacious in chronic spontaneous urticaria, but thinks the Street is overly optimistic on its commercial potential given its “less-than-ideal” safety profile, the more advanced competition and time required for Phase 3 trials. The stock’s risk/reward is skewed to the downside for barzolvolimab into Phase 1 readout in Q4, the analyst tells investors in a research note.