Leerink Partners Initiates Coverage on Xilio Therapeutics with Outperform Rating, Sets Price Target of $2.00

Leerink Partners initiates coverage on Xilio Therapeutics with an "Outperform" rating and a price target of $2.00. The coverage is led by analyst Daina Graybosch and reflects a positive outlook on the stock's performance. Investors are encouraged to consider this new information as part of their investment decisions. The average target price for Xilio Therapeutics is $4.00, implying an upside of 506.01% from the current price of $0.66.

Leerink Partners has initiated coverage on Xilio Therapeutics Inc. (NASDAQ: XLO) with an "Outperform" rating and a price target of $2.00. This rating, set by analyst Daina Graybosch, reflects a positive outlook on the stock's performance and suggests significant upside potential.

The research firm highlights Xilio’s lead clinical program, vilastobart (vila), a conditionally masked CTLA-4 antagonist. When combined with atezolizumab (anti-PD-L1), vilastobart has shown proof-of-concept efficacy in relapsed/refractory microsatellite stable, non-liver metastatic colorectal cancer. Leerink Partners believes vilastobart offers a wider therapeutic window compared to unmasked anti-CTLA-4 treatments, positioning it for potential development and commercial success in both relapsed/refractory and earlier-line colorectal cancer settings.

Xilio Therapeutics has also demonstrated clinical expertise in developing protease-masked biologics, securing multiple larger biopharma partners and a promising pipeline that includes IL-12 (XTX-301), PD-1 x IL2 (alpha binding retained), and a portfolio of CD3 T cell engagers.

In recent news, Xilio Therapeutics announced the initiation of a public offering of warrants, including pre-funded and Series A, B, and C warrants to purchase shares of common stock. The completion and terms of this offering are subject to market conditions, with the proceeds intended to support the development of Xilio’s product candidates and other corporate needs. Leerink Partners is serving as the sole bookrunner for this offering.

Additionally, Xilio Therapeutics has expanded its board of directors with the appointment of Akintunde Bello, Ph.D., as a new member. Dr. Bello, with over 25 years of experience in oncology drug development, will serve as a Class II director until the 2026 annual stockholders meeting.

Xilio Therapeutics is expected to report a 214.0% increase in revenue to $7.4 million for the period ending June 30, 2025, and a loss of 10 cents per share. The one available analyst rating on the shares is "buy."

The average target price for Xilio Therapeutics is $4.00, implying an upside of 506.01% from the current price of $0.66.

References:
[1] https://www.ainvest.com/news/leerink-partners-initiates-coverage-xilio-therapeutics-outperform-rating-2508/
[2] https://www.tradingview.com/news/reuters.com,2025:newsml_L8N3TW0TO:0-xilio-therapeutics-inc-expected-to-post-a-loss-of-10-cents-a-share-earnings-preview/