ALXO Stock Forecast & Price Target

ALX Oncology Holdings Inc's positive outlook is bolstered by its innovative approach to cancer treatment, particularly with its lead candidate, evorpacept, which is currently in Phase 1 and 2 clinical trials as a next-generation CD47 blocker. The expansion of the pipeline with ALX2004, an EGFR-targeting antibody-drug conjugate, showcases the company's commitment to enhancing safety and efficacy in oncology therapies, particularly as it demonstrates strong anti-tumor activity across various cancer models. Furthermore, the promising preliminary data from studies combining evorpacept with anti-HER2 antibodies indicates the potential for durable efficacy in HER2+ breast cancer, suggesting a favorable trajectory for future clinical success and shareholder value.

ALX Oncology Holdings Inc has updated its financial model, restructuring its projections and lowering confidence in the potential success of its gastric cancer and other tumor type regimens, which has contributed to a negative outlook. The company reported no revenues for 4Q24, aligning with consensus expectations, but posted a net loss of $0.55 per share, slightly better than the anticipated loss of $0.67. Additionally, the perceived high risk of FDA rejection for accelerated approval pathways, combined with the delayed emergence of significant clinical data in breast cancer and colorectal cancer until 2026, raises further concerns about the company's financial trajectory.