ALX Oncology price target raised to $9 from $8 at Piper Sandler

Piper Sandler raised the firm’s price target on ALX Oncology (ALXO) to $9 from $8 and keeps an Overweight rating on the shares following the company’s R&D Day, where management detailed a more focused evorpacept development and commercialization path. In the short term, the firm is awaiting ASPEN-03/04 data in HNSCC and engagement with the FDA to determine the path forward in gastric/GEJ cancer, which could potentiate two accelerated approval filings. New was the announcement of two expansions into HER2+ breast cancer and EGFR+ CRC, where based on previous signals of efficacy and assuming ALX carefully controls the trial enrollment and design, Piper feels positively about these opportunities. Combined with a novel ADC and trimmed expenses, the firm likes the setup here.