Iovance Biotherapeutics (IOVA) concluded the stock trading week with a near 6% decline, mainly due to a downgrade by an analyst. This occurred despite a generally positive day for the stock market, with the S&P 500 index rising by 0.7%.
A Bearish Adjustment
Before the market opened, UBS analyst David Dai changed his recommendation on Iovance from "buy" to "neutral," and significantly reduced his price target from $17 to $2 per share.
Dai’s updated analysis of the biotech company followed over a week of assessing Iovance’s latest quarterly earnings. Reports indicate that Dai noted the sales of Amtagvi, Iovance’s leading advanced melanoma drug, were below expectations, suggesting a slower commercialization ramp-up. He also expressed concerns about higher drop-out rates, implying potential issues in patient selection.
Reasons to be Cautious
While Iovance’s scientific foundation and the potential of Amtagvi are strong, there are business aspects causing investor concern. Dai highlighted that the commercialization pace feels slow, and the company’s significant revenue guidance cut in the earnings report adds to the caution. As a result, a bullish stance on the stock is not advisable at this time.
Eric Volkman holds no position in any of the stocks mentioned. The Motley Fool holds positions in and recommends Iovance Biotherapeutics. The Motley Fool has a disclosure policy.
