GXGX - BTIG initiates shares of SPAC GX Acquisition with a buy rating $16 price target

BTIG analyst Thomas Shrader has initiated SPAC GX Acquisition Corp. (GXGX) with a buy rating and a $16 price target.Given yesterday close of $10.06, that represents an upside of 59%.GX's merger with Celularity Inc., a clinical-stage biotechnology company, was announced in January.Celularity is focused on placenta derived-mesenchymal cell ("MSC") therapies.Shrader says that because these cells are "highly enrichedin stem cell-like precursors," they may be useful in fighting hematological and solid tumors, as well as chronic inflammatory diseases."MSCs have demonstrated a role in tissue repair and anti-inflammation in hundreds of trials but the requirement for harvesting from bone marrow has made commercialization challenging," Shrader writes. "The use of the placenta as an MSC source could revolutionize the field as this tissue is abundant and placenta-derived MSCs are expandable in culture."He says after de-SPACing, Cellularity would have a market cap of ~$1.9BGX shares are up 0.5% to $10.11 in morning trading.

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BTIG initiates shares of SPAC GX Acquisition with a buy rating, $16 price target