Analyst Alec Stranahan from Bank of America Securities maintained a Buy rating on Candel Therapeutics (CADL – Research Report) and keeping the price target at $15.00.
Alec Stranahan has given his Buy rating due to a combination of factors that highlight the promising potential of Candel Therapeutics’ CAN-2409. The recent phase 2 trial data for CAN-2409 in pancreatic ductal adenocarcinoma (PDAC) showed a significant improvement in overall survival compared to the standard of care, with a median overall survival of 31.4 months versus 12.5 months for the control group. This compelling survival benefit, coupled with a favorable safety profile, strengthens the case for CAN-2409 as it moves towards a pivotal trial.
Furthermore, the data supports the proposed mechanism of action for CAN-2409, which involves activating an immune response within the tumor environment. The presence of immune cells and pro-inflammatory cytokines suggests a robust systemic anti-tumoral response. Additionally, the synergistic effect observed with salvage chemotherapy in the CAN-2409 group further enhances its therapeutic potential. Despite the need for additional financing to advance clinical trials, the strong proof-of-concept and upcoming readouts in other indications like non-small cell lung cancer and prostate cancer provide a positive outlook for CAN-2409’s future.
According to TipRanks, Stranahan is an analyst with an average return of -7.2% and a 43.21% success rate. Stranahan covers the Healthcare sector, focusing on stocks such as Agios Pharma, Krystal Biotech, and Springworks Therapeutics.
In another report released on February 20, Citi also initiated coverage with a Buy rating on the stock with a $25.00 price target.