On Tuesday, Truist Securities adjusted its outlook on Arcellx Inc. (NASDAQ: ACLX), increasing the price target for the shares to $87 from the previous $57. The firm maintains a Buy rating on the shares, expressing a heightened confidence in the company's CAR-T therapy, Anito-cel, due to recent translational data.
The optimism stems from the potential of Arcellx's CAR-T product to become a leader in the BCMA CAR-T space. This assessment is based on the translational data of Carvykti and its implications for Anito-cel.
Truist Securities believes that the combination of Arcellx's innovative therapy and the manufacturing prowess of its partner, Gilead Sciences (NASDAQ: NASDAQ:GILD), which holds a Hold rating from the same firm, positions Anito-cel to capture a significant share of the market.
The upgrade in the price target to $87 signifies a substantial $30 increase from the previous target. This revision is attributed to the updated sales forecast for the myeloma CAR-T market and the financial model for Arcellx. The firm's stance is reinforced by the expectation that Anito-cel has the potential to emerge as a best-in-class option among BCMA CAR-T therapies.
The analyst from Truist Securities elaborated on the decision, noting that the adjustments to the sales forecast and financial model for Arcellx have led to the new price target of $87 per share. This reflects a considerable rise and reaffirms the firm's Buy recommendation for Arcellx's stock.
Investors and market watchers will be keeping a close eye on Arcellx's progress, especially in light of the company's promising CAR-T therapy and its partnership with an industry leader like Gilead Sciences. The increased price target and sustained Buy rating highlight the market's expectation for Arcellx's future performance in the competitive field of CAR-T therapies.
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