Jefferies analysts raised Allakos (NASDAQ:) to buy on hold, bringing the company’s price target on the stock to $9 from $6 per share in a note on Friday.
Analysts told investors they saw a favorable setup for the stock in the Ph.IIb CSU data.
The “key ph.IIb reading for liren in CSU is set for 2:23 AM – we now believe the risk/reward bias is positive,” the analysts wrote.
ALLK shares gained more than 7% on Friday after the note, with the company’s new price target representing 110% upside potential. However, the stock is down more than 47% in 2023.
“We believe that 1) the success bar is reasonable (i.e., stat sig vs PBO and ~ as good as Xolair); 2) the POC data so far and the ph.IIb setup gives ALLK a decent selling point to reach the study; and 3) stock should respond (recall, stock was up ~80% in 2019 from EGiD ph.II), even though ph.III/the way trade is TBD/more difficult,” they added.