On Thursday, H.C. Wainwright adjusted its outlook on Allogene (NASDAQ: ALLO) shares, reducing the 12-month price target to $9 from the previous $10, yet reaffirming a Buy rating on the stock.
The revision follows Allogene's first-quarter financial results for 2024, where the company posted a net loss of $0.38 per share, which was close to the firm's forecasted net loss of $0.39 per share.
The company's research and development (R&D) expenses for the quarter totaled $52.3 million, slightly below the analyst's expectations of $54.1 million. Selling, general and administrative (SG&A) expenses were also reported at $17.3 million, almost aligning with the projected $17.4 million.
Looking forward, H.C. Wainwright has updated its projections for the full year, anticipating a net loss of $1.40 per share for Allogene in 2024. This estimate is an improvement compared to the previous expectation of a $1.60 per share net loss. The revision comes after considering Allogene's recent equity raise.
The analyst's commentary highlighted the company's performance and the adjustments made to the financial projections. "For 1Q24, Allogene recorded a net loss of $0.38 per share—largely in line with our estimated net loss of $0.39 per share. R&D and SG&A expenses were $52.3M (NYSE:MMM) and $17.3M, respectively, vs. our estimates of $54.1M and $17.4M.
We now project a full-year 2024 net loss of $1.40 per share vs. our prior net loss estimate of $1.60 per share. After factoring in the recent equity raise, we reiterate our Buy rating, while slightly lowering our 12-month price target to $9 per share from the prior $10 per share."
The reassessment of Allogene's price target reflects a nuanced view of the company's financial health and future prospects, taking into account the recent capital infusion and the close alignment of actual financial results with the analyst's expectations.
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