MGNX Stock Hits 16-Month High, But This Analyst Sees Another 140% Potential Upside

• The firm said MGNX is uniquely positioned in the emerging Antibody-Drug Conjugate therapy space.
• B. Riley said Gilead’s $5 billion acquisition of Tubulus earlier this week prompted it to develop its own valuation models for ADC firms.
• On Wednesday, MGNX said the U.S. FDA has lifted the partial clinical hold on its Phase 2 trial of a drug to treat cancer.

Shares of MacroGenics (MGNX) surged around 10% on Friday, with the stock hitting its highest levels since November 2024. This comes after a bullish analyst call highlighted significant upside potential, with the firm projecting gains of up to 140% from current levels.

On Friday, B. Riley upgraded MacroGenics to ’Buy’ from ‘Neutral’ with a $9 price target, according to The Fly.

B. Riley Upgrades Stock After Gilead Tubulus Deal

The brokerage said that after Gilead Sciences’ (GILD) $5 billion deal to acquire Tubulus earlier this week, it developed its own valuation model for next-generation Antibody-Drug Conjugate (ADC) companies and believes MGNX is uniquely positioned in the emerging “ADAM9 TOPO1i ADC space.”

ADC is a cancer treatment that combines targeted therapy and chemotherapy.

On Tuesday, Gilead Sciences (GILD) entered into a definitive agreement to acquire Tubulis GmbH, a German clinical-stage biotechnology company. Gilead will pay $3.15 billion upfront, and up to $1.85 billion in additional milestone payments.

The deal strengthens Gilead’s ADC pipeline by adding Tubulis’ assets, including TUB-040, a drug in development for ovarian and non-small cell lung cancers.

FDA Lifts Partial Clinical Hold On Ovarian Cancer Trial

On Wednesday, MGNX said the U.S. FDA had lifted the partial clinical hold on its Phase 2 LINNET study of Lorigerlimab, a cancer drug. The trial is testing the drug in patients with certain advanced ovarian and gynecologic cancers who have already received prior treatments.

So far, 41 patients have been treated in the study, with over 300 patients dosed across earlier trials.

Existing patients were allowed to continue treatment during the hold, and the study will now resume enrolling new patients under an updated protocol with added safety measures.

How Did Stocktwits Users React?

Retail sentiment for MGNX on Stocktwits flipped to ‘bullish’ from ‘bearish’, amid high message volumes.

One user said the stock’s valuation was “too low.”

Year-to-date, the stock has surged around 133%.

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