ALX Oncology Holdings Inc. (ALXO), a leading biotechnology company, experienced a significant 9% increase in pre-market trading on Friday following an upgrade by Jefferies analysts. The analysts revised their rating for the stock from hold to buy, citing its attractive valuation. Notably, ALX is anticipated to announce results from three highly promising phase 2 trials in 2024.
Investigational Therapy Shows Potential for Treating Advanced Head and Neck Squamous Cell Cancer
One of ALX’s key areas of focus is an investigational therapy being studied in conjunction with Merck & Co. Inc.’s innovative drug, Keytruda, for the treatment of advanced head and neck squamous cell cancer. In October, ALX shares experienced a remarkable 80% surge when the company published data from a phase 2 trial involving a combination therapy for gastric cancer. Further data from this trial is expected to be unveiled in the second quarter of next year.
Anticipating Upside Potential in 2024
The Jefferies analysts expressed their confidence that investors will begin recognizing the significant potential for ALX Oncology Holdings Inc. in the coming years. They emphasized that the stock is undervalued and projected a price target of $18, up from its previous value of $8.00.
Market Performance and Outlook
ALX shares have witnessed an 18% decline year-to-date, while the S&P 500 has experienced a 19% climb. This recent upgrade by Jefferies, coupled with the company’s upcoming trial results, indicates a positive outlook for ALX Oncology Holdings Inc. and suggests that investors should keep a close eye on its future developments.