What happened
The stock of cancer-focused biotech MacroGenics (MGNX 1.32%) was off to a good start this week. It received a nice price bump on the back of two price-target hikes by pundits following the stock. The shares closed the day higher by 0.6%, which nearly met the 0.9% increase of the S&P 500 index.
So what
Analysts are continuing to revise their takes on MacroGenics stock, following the company's release of its annual earnings report after market hours last Wednesday. Investors were encouraged by the jump in revenue over the 2021 figure, and the significant narrowing of the company's net loss.
It wasn't immediately clear why either H.C. Wainwright analyst Debjit Chattopadhyay or his peer Kaveri Pohlman at BTIG raised their price targets on MacroGenics. Regardless, both are now more bullish on the company in the wake of that 2022 performance.
Chattopadhyay added $2 per share to his price target for a new tally of $14; Pohlman made an even higher leap, doubling her target to $12. In doing so, analysts maintained their buy recommendations on the biotech's shares.
For the most part, prognosticators following the stock are expecting improvements in certain key fundamentals. Collectively, they're expecting MacroGenics to continue reducing its net loss, to $1.71 per share this year against 2022's $1.95. On the down side, they're modeling only $121 million for revenue; last year's figure was nearly $152 million.
Now what
While MacroGenics is basking in the afterglow of those results, the company still has much to prove. It's currently conducting a phase 2 clinical trial of vobramitamab duocarmazine, its treatment for metastatic castration-resistant prostate cancer (mCRPC). Meanwhile, it hopes to launch a phase 2 trial of another drug targeting mCRPC, lorigerlimab, as a combination therapy with chemotherapy treatment docetaxel later this year.
