ALX Oncology Holdings: Balancing Growth Potential and Uncertainty with a Hold Rating

LifeSci Capital analyst Sam Slutsky has maintained their neutral stance on ALXO stock, giving a Hold rating on March 7.

Sam Slutsky has given his Hold rating due to a combination of factors related to ALX Oncology Holdings’ current position and future prospects. The company has announced new trials involving evorpacept in breast and colorectal cancers, as well as an EGFR-targeted ADC, which indicates potential growth opportunities. However, the outcomes of these trials are still pending, and the results from the Phase 2 readouts in head and neck squamous cell carcinoma are awaited, adding an element of uncertainty.
Additionally, while ALX Oncology ended 2024 with a substantial cash reserve expected to fund operations into late 2026, the company’s annual cash burn rate and short interest percentage suggest cautious optimism. The prioritization of certain cancer programs and the anticipated FDA feedback on gastric/GEJ cancer further influence the Hold rating, as these factors contribute to a balanced risk-reward scenario for investors at this time.

In another report released on March 7, Stifel Nicolaus also maintained a Hold rating on the stock with a $1.50 price target.