On Wednesday, Adaptive immune therapy plc (NASDAQ:) has received a rating upgrade from Jones Trading from Hold to Buy. The firm also set a new price target for the company’s shares at $3.00. The adjustment comes as the biotech sector improves, prompting Jones Trading to revise its trading multiples for the company.
The decision to upgrade Adaptimmune Therapeutics shares is based on several financial factors. Jones Trading included in its valuation model approximately $115 million in projected milestones and tax benefits that the company has received and expects to receive. These expected financial benefits played a significant role in the company’s reassessment of the stock’s potential.
The new target price represents a notable increase and reflects the firm’s confidence in the company’s future performance. The $3.00 target is based on “modest adjustments” to the valuation model used by Jones Trading to estimate the value of Adaptimmune Therapeutics.
Adaptimmune Therapeutics specializes in developing T-cell therapies to treat cancer and other serious diseases. Jones Trading’s upgrade suggests a positive outlook for the company, consistent with broader trends seen in the biotech sector.
Investors and market watchers will be keeping a close eye on Adaptimmune Therapeutics to see if the stock’s performance is in line with Jones Trading’s expectations following this upgrade and price target revision.
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