Boral Capital Raises Lineage Cell PT to $2 from $2

Boral Capital Raises Lineage Cell PT to $2 from $2

Boral Capital has increased its price target for Lineage Cell Therapeutics (LCTX) from $2 to $2, reflecting recent developments and earnings reports. The biotechnology company reported mixed financial results for the second quarter of 2025, with revenue surpassing expectations but a wider net loss than anticipated [1]. Despite the financial challenges, Lineage Cell Therapeutics has shown progress in its clinical trials and manufacturing capabilities.

The company's OpRegen retinal cell therapy program reported positive 36-month data from a Phase 1/2a clinical trial, showing sustained visual acuity improvements in patients with geographic atrophy (GA) [2]. Additionally, the company successfully administered OPC1 for the first time in a chronic spinal cord injury participant in the DOSED study, marking a significant milestone in spinal cord injury treatment [3].

Lineage Cell Therapeutics has also developed a GMP banking and production platform capable of generating millions of doses, enhancing its manufacturing capabilities and reducing dependency on equity capital markets through partnerships [1]. The company's strategic focus on manufacturing and directed differentiation aims to advance existing and new programs cost-effectively.

However, the company faced a significant increase in operating expenses, primarily due to a $14.8 million impairment expense related to an intangible asset, resulting in a net loss of $30.5 million for the quarter [1]. There is uncertainty regarding the timing and outcome of ongoing clinical trials, and enrollment in clinical trials, particularly for chronic patients, remains unpredictable, posing challenges for trial progression and data disclosure timelines [1].

Boral Capital's revised price target reflects the company's progress in clinical trials and manufacturing capabilities, as well as its strategic focus on reducing dependency on equity capital markets. However, investors should remain cautious due to the financial challenges and uncertainties surrounding the company's clinical trials.

References:
[1] https://finance.yahoo.com/news/lineage-cell-therapeutics-inc-lctx-071226407.html
[2] https://www.ainvest.com/news/lineage-cell-therapeutics-navigating-key-contradictions-manufacturing-trials-fda-communication-2025q2-earnings-call-2508/
[3] https://www.ainvest.com/news/lineage-cell-therapeutics-reports-q2-2025-results-clinical-updates-symposium-2508/