What happened
Shares of clinical-stage immunotherapy company Agenus (AGEN 14.86%) were up by a healthy 18% as of 1:09 p.m. ET on Wednesday. Investors are bidding up the biotech's stock today following the release of its 2021 fourth-quarter and full-year earnings report.
What appears to really be moving the stock, though, is a price target upgrade by financial firm H.C. Wainwright. In response to the impressive clinical progress of Agenus' anti-cancer checkpoint inhibitor platform, Wainwright raised its 12-month price target on the biotech's shares to $14 ahead of the opening bell this morning.
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So what
The firm previously had a price target of $12 on the biotech's stock. This upward revision is noteworthy as it implies that Agenus' stock could appreciate by a whopping 440% relative to the closing price yesterday afternoon.
Now what
Is this 12-month price target realistic? It's not out of the realm of possibility. But Agenus will probably need a buyout to hit this monstrous price target within the next 12 months. While Agenus' stock is certainly undervalued based on the commercial opportunity offered by its diverse anti-cancer pipeline and various partnerships, the company is still a few years away from becoming a commercial-stage operation.
So without a buyout offer, Agenus' stock isn't likely to rocket higher in this risk-averse market. That being said, a buyout definitely isn't unrealistic in this case, either.
