On Wednesday, H.C. Wainwright adjusted its outlook on Lineage Cell Therapeutics Inc. (NYSE:LCTX), raising the price target on the company's shares to $9.00 from the previous $7.00. The firm retained its Buy rating on the stock. Currently trading at $0.59, well below its 52-week high of $1.61, LCTX has seen its shares decline nearly 44% over the past six months.
According to InvestingPro data, analyst consensus remains bullish with price targets ranging from $2 to $7. The revision comes in light of expected Phase 2a data from Roche/Genentech for OpRegen (RG6501), a treatment under investigation for dry age-related macular degeneration (dry-AMD) with geographic atrophy (GA).
The analyst from H.C. Wainwright expressed confidence in the investment case for Lineage at this juncture, citing the upcoming data as a pivotal moment. The data from Roche/Genentech will be the first independently generated results following the promising outcomes previously presented by Lineage.
InvestingPro analysis shows the company maintains a healthy current ratio of 2.48, with liquid assets exceeding short-term obligations, though it operates with an EBITDA of -$18.57 million in the last twelve months. The company's earlier results from five critical patients in Cohort 4 demonstrated unprecedented retinal structural restoration and improvements in visual acuity, a significant achievement in the context of dry-AMD treatment.
The partnership between Lineage and Roche was formed in 2021, driven by the groundbreaking data that indicated potential restorative effects of OpRegen on vision. This aspect of the treatment is particularly notable as it contrasts with other recently approved drugs that only slow the progression of GA without improving or restoring vision. The analyst reiterated the Buy rating and emphasized the potential for OpRegen to be a transformative treatment in the dry-AMD space, which was recognized early on by Roche.
The analyst's commentary highlights the significance of the upcoming Phase 2a data and the implications for both Lineage Cell Therapeutics and the broader medical community awaiting advancements in the treatment of dry-AMD and GA.
The price target increase to $9 reflects the firm's heightened expectations for the stock's performance in anticipation of these developments. While analysts forecast a sales decline for the current year, InvestingPro subscribers can access 8 additional key insights and a comprehensive Pro Research Report that provides deep-dive analysis of LCTX's financial health, valuation metrics, and growth potential.
In other recent news, Lineage Cell Therapeutics has secured a $30 million direct offering, with potential for an additional $36 million upon the exercise of warrants. This includes the sale of approximately 39.5 million common shares and accompanying warrants to healthcare-focused institutional investors and Broadwood Partners, L.P. In terms of financial performance, the company reported Q3 results with $32.7 million in cash, $3.8 million in revenue, and a reduced net loss to $3 million.
Boral (OTC:BOALY) Capital, an independent analyst firm, has upgraded Lineage Cell Therapeutics' stock to a Buy rating, setting a price target at $3.00. This endorsement comes as the company advances in the OpRegen and OPC1 clinical programs and enhances its manufacturing capabilities for cell therapies.
The company is also progressing with the FDA regarding the OPC1 program for spinal cord injuries and expects IND amendment review completion for OPC1 in Q1 2025. A partnership with Genentech on the OpRegen program for dry AMD (NASDAQ:AMD) indicates increased investment and commitment.
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