Candel Therapeutics Downgraded to Neutral by B of A Securities

Candel Therapeutics Downgraded to Neutral by B of A Securities

Candel Therapeutics, Inc. (NASDAQ:CADL), a clinical-stage biopharmaceutical company, has faced a significant change in its stock rating. On September 2, 2025, Bank of America Securities downgraded the company's stock to a "Neutral" rating, reflecting a shift in the investment outlook [1].

The downgrade comes after Candel Therapeutics reported earnings of ($0.09) per share for its last quarter, which outperformed analysts' expectations of ($0.17). Despite this positive earnings performance, the company has been grappling with a consensus rating of "Buy" from five research firms, with a 12-month average target price of $22.00 [1].

The decision by Bank of America Securities to downgrade the stock to "Neutral" is likely influenced by several factors. One key consideration is the company's ongoing clinical trials for its lead viral immunotherapy candidate, CAN-2409, which is in Phase II clinical trials for the treatment of pancreatic cancer, Phase III clinical trials for prostate cancer, and Phase II clinical trials for lung cancer [2].

Institutional investors have shown growing interest in Candel Therapeutics, with several prominent firms increasing their stakes in the company. However, the company's market capitalization of $317.87 million and a debt-to-equity ratio of 0.01 suggest a relatively stable financial position [1].

The appointment of Carl H. June, M.D., to Candel's Research Advisory Board in August 2025 also signals a strategic move to advance the company's lead product candidate, CAN-2409, across multiple solid tumor indications [2]. Dr. June, a pioneer in developing the first U.S. Food and Drug Administration (FDA)-approved CAR-T cell therapy, brings valuable expertise to the company.

Despite the downgrade, Candel Therapeutics continues to face significant challenges in its clinical trials and market penetration. The company's ability to successfully navigate these challenges and achieve regulatory approvals will be crucial for its long-term success.

References:
[1] https://www.marketbeat.com/instant-alerts/candel-therapeutics-inc-nasdaqcadl-receives-consensus-rating-of-buy-from-brokerages-2025-08-30/
[2] https://www.biospace.com/press-releases/candel-therapeutics-appoints-renowned-immunotherapy-pioneer-carl-h-june-m-d-to-research-advisory-board