ALLK - Allakos jumps 22% after Q4 update amid bullish views from Piper Sandler

2023-03-07 11:29:42 ET

• Rebounding from a five-month low in the previous session, Allakos ( NASDAQ: ALLK ) gained ~22% on Tuesday after the clinical-stage biotech announced its Q4 2022 results and Piper Sandler launched its coverage with an Overweight rating.
• As for the Q4 update, upcoming milestones for Redwood City, California, indicate initial data readouts expected for its lead candidate lirentelimab in H2 2023 from two mid-stage studies for atopic dermatitis (AD) and chronic spontaneous urticaria (CSU).
• Piper Sandler analyst Yasmeen Rahimi argues that the company has become a “controversial name” and a show-me story after setbacks for two Phase 3 trials.
• “We disagree with the investor sentiment,” the analyst added, with a Street high price target of $22 per share. Rahimi highlighted the lirentelimab’s mechanism of action and argued that the monoclonal antibody could potentially indicate positive outcomes in mid-stage trials for CSU and SD.
• Similarly, Seeking Alpha contributor Terry Chrisomalis issued a Strong Buy rating on Allakos ( ALLK ) in October, citing the prospects of lirentelimab.

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