Last Updated: 07 Nov 2024
Executive Summary
Allogene Therapeutics Inc. (ALLO) is a clinical-stage immuno-oncology company developing genetically engineered allogeneic T-cell therapies for cancer treatment. With a market capitalization of $625.24 million, ALLO has a strong analyst rating, with 13 out of 18 analysts recommending a "Buy" or "Strong Buy." Despite a negative EPS of -$1.58 and a high Price-to-Sales ratio of 9619.15, the company shows promise in its research and development pipeline.
Company Overview
Headquartered in South San Francisco, California, ALLO focuses on developing CAR T and TCR T-cell therapies that can effectively target and eliminate cancer cells. The company's lead product candidate, ALLO-501, is a CAR T-cell therapy for the treatment of relapsed/refractory B-cell acute lymphoblastic leukemia.
Fundamental Analysis
ALLO's financial performance has been mixed. The company reported a revenue of $65,000 for the quarter ending June 30, 2024, a 0.267% decrease year-over-year. However, its gross profit increased by 15.6% to $243,000. The company's operating margin remains negative at -4166.25%, indicating high operating expenses.
Technical Analysis
Technically, ALLO's stock price has been trading within a range of $2.01 to $5.78 over the past 52 weeks. The current price of $3.22 is above the 50-day moving average of $2.7 but below the 200-day moving average of $3.183. The stock's beta of 0.832 suggests moderate volatility compared to the broader market.
Short Term Outlook
In the short term, ALLO's stock price may face resistance at the 200-day moving average. However, positive news about clinical trial results or regulatory approvals could provide a catalyst for upward movement.
Long Term Outlook
The long-term outlook for ALLO depends on the success of its clinical pipeline. If the company can successfully develop and commercialize its CAR T and TCR T-cell therapies, it has the potential for significant growth. However, competition in the immuno-oncology space is intense, and ALLO will need to differentiate its products and establish a strong market position.
Analyst Recommendations
Analysts are generally bullish on ALLO's long-term prospects. Five analysts recommend a "Strong Buy," eight recommend a "Buy," and five recommend a "Hold." The average analyst target price is $9.51, implying a potential upside of over 195% from the current price.
