Leerink Swann Thinks Adaptimmune Therapeutics’ Stock is Going to Recover

By Austin Angelo

Leerink Swann analyst Michael Schmidt reiterated a Buy rating on Adaptimmune Therapeutics (NASDAQ: ADAP) today and set a price target of $15. The company’s shares opened today at $4.98, close to its 52-week low of $3.76.

Schmidt observed:

“We are updating our estimates for 3Q16 financial results. ADAP announced yesterday that the FDA has removed the partial clinical hold on the planned study of NY-ESO T cell receptor (TCR) therapy in Myxoid/Round Cell Liposarcoma (MRCLS), which should remove an overhang on ADAP shares. We maintain our OP rating given our favorable view on ADAP’s differentiated platform technology focused on engineered TCR-based adoptive T cell therapy and the longer-term opportunity which could potentially overcome some of the potential drawbacks of CAR-T cell therapy in addressing solid tumor indications.”

According to TipRanks.com, Schmidt is a top 100 analyst with an average return of 19.1% and a 58.6% success rate. Schmidt covers the Healthcare sector, focusing on stocks such as Ionis Pharmaceuticals Inc, Karyopharm Therapeutics, and Five Prime Therapeutics.

Currently, the analyst consensus on Adaptimmune Therapeutics is Strong Buy and the average price target is $15, representing a 201.2% upside.

In a report released yesterday, Cowen & Co. also reiterated a Buy rating on the stock.

Based on Adaptimmune Therapeutics’ latest earnings report for the quarter ending June 30, the company posted quarterly revenue of $465.5K and GAAP net loss of $31.35 million. In comparison, last year the company earned revenue of $4 million and had a GAAP net loss of $1.38 million.

Based on the recent corporate insider activity of 25 insiders, corporate insider sentiment is positive on the stock. This means that over the past quarter there has been an increase of insiders buying their shares of ADAP in relation to earlier this year.

Adaptimmune Therapeutics Plc is a clinical stage biopharmaceutical company, which focuses on novel cancer immunotherapy products based on T-cell receptor platform. Its TCR platform targets NY-ESO-1 cancer antigen. The company was founded in December 2014 and is headquartered in Oxford, the United Kingdom.