B of A Securities Downgrades Xencor to Neutral with $12 PT.

B of A Securities Downgrades Xencor to Neutral with $12 PT.

Bank of America Securities (BofA) has downgraded Xencor (NASDAQ:XNCR) to Neutral with a price target of $12 per share, citing concerns over a lengthier development timeline for the California-headquartered antibody therapy developer [1]. The downgrade follows a broader trend of reduced optimism for clinical-stage biotechs, as the analyst argued that stocks without near-term significant readouts may struggle in the current environment.

The downgrade comes as part of a broader review of several mid-cap biotechs, including Candel Therapeutics (NASDAQ:CADL) and Erasca (NASDAQ:ERAS), which were also downgraded by BofA. Xencor's development timeline for its antibody therapies has been a significant concern, with the analyst noting that the company's pipeline may face delays and increased costs.

Despite the downgrade, Xencor remains a player in the biotechnology sector, with a strong pipeline of antibody therapies. The company's focus on developing innovative treatments for various diseases continues to attract attention from investors. However, the market's current focus on near-term catalysts has made stocks like Xencor more vulnerable to downgrades.

Investors should closely monitor Xencor's upcoming clinical trials and other developments to gauge the potential for a turnaround in the stock's performance. The company's ability to deliver positive clinical data in the near term could potentially lead to a reassessment of its valuation by analysts.

References:
[1] https://seekingalpha.com/news/4491951-erasca-candle-xencor-drop-bofa-downgrades