Selected stock price target news of the day - July 03, 2023

By Matthew Otto

Eli Lilly to Acquire Sigilon Therapeutics

pharmaceutical giant Eli Lilly revealed last week its plans to acquire Sigilon Therapeutics, a company specializing in cell therapies, particularly for diabetes patients. The acquisition aims to provide Lilly with access to innovative experimental treatments that offer longer-term solutions for individuals living with diabetes.

Lilly, renowned for its extensive portfolio of diabetes drugs and insulin, already held an 8.44% stake in Sigilon as of March 27. However, the company now intends to purchase all remaining shares. The deal involves an upfront cash payment of $14.92 per share, totaling $34.6 million, for the remaining shares of Sigilon.

Sigilon shareholders will also have the opportunity to earn an additional $111.64 per share if specific developmental and regulatory milestones are achieved, as stated by Lilly.

The transaction is expected to be completed during the third quarter of 2023, granting Lilly access to Sigilon’s proprietary cell therapy candidate developed specifically for the treatment of type 1 diabetes.

This collaboration between Eli Lilly and Sigilon is not new, as the two companies have been partners since 2018. Back then, Lilly entered into a licensing agreement with Sigilon, investing $63 million to develop cell therapies targeting type 1 diabetes. However, the exact details of Lilly’s undisclosed equity investment were not disclosed.

It is worth noting that Lilly’s diabetes product portfolio significantly contributed to over 50% of its total revenue in 2022.

Morgan Stanley adjust Price Target on Sigilon

Morgan Stanley analyst Matthew Harrison maintains an Equal-Weight however he raises the price target from $7 to $21.

Harrison is also currently the analyst with the highest performing score on SGTX with 3/5 (60%) price target fulfillment ratio. His price targets carry on an average of $-0.04 (11.82%) potential downside and are fulfilled within an average of 429 days.

Agenus Reports Promising Phase 1b Trial Data for Treating Metastatic Colorectal Cancer

Agenus revealed data from its Phase 1b trial concerning the combination of botensilimab and balstilimab at the 2023 ESMO World Congress on Gastrointestinal Cancer. This data demonstrates survival benefits and sustained responses for patients with non-MSI-H (microsatellite stable or non-microsatellite instability-high) metastatic colorectal cancer, a condition historically resistant to chemotherapy and immunotherapy.

According to the Chief Medical Officer at Agenus, Dr. Steven O’Day, these results not only indicate the potential of the botensilimab/balstilimab combination for colorectal cancer treatment but also show promise for multiple challenging cancer types. Supporting this assertion, Dr. Andrea Bullock, a study investigator, highlighted the significant survival benefit observed in the trial, with 69% of objective responses ongoing at the data cutoff.

Analysts Maintain Positive Outlook on Agenus

Colleen Kusy from Baird initiates coverage on Agenus with an Outperform rating and a price target of $8.
Tony Butler from EF Hutton reiterates a Buy rating and a price target of $8.3.
Emily Bodnar from HC Wainwright reiterates a Buy rating and a maintained price target of $8.

Analyst Michael King (BENCHMARK) has currently the highest performing score on AGEN with his price targets carrying on an average of $7.74 (289.82%) potential upside.

Tesla Surpasses Expectations with Record-Breaking Deliveries and Production in Q2 2023

Tesla’s Q2 2023 report shows a growth in vehicle production and deliveries, surpassing analysts’ expectations. The EV giant delivered a total of 466,140 vehicles while producing 479,700 units. The significant growth, representing an 83% year-over-year increase, can be attributed to expanded manufacturing capacity and boosted production at Tesla’s Austin plant. 96% of Tesla’s deliveries consisted of its Model 3 and Model Y vehicles.

Tesla currently operates several assembly plants worldwide, with plans to construct a new factory in Monterrey, Mexico. CEO Elon Musk revealed plans to deliver the Cybertruck in 2023 and a revamped version of the Model 3 in North America.

Analysts Provide Mixed Ratings and Price Targets for Tesla

Citigroup Analyst Itay Michaeli reiterates a Neutral rating and a price target of $215.
Wedbush Analyst Daniel Ives maintains an Outperform rating and a price target of $300.
Truist Securities Analyst William Stein raises the price target to $240 from $154 while maintaining a Hold rating.
Deutsche Bank Analyst Emmanuel Rosner increases the price target to $270.

Analyst George Galliers (GOLDMAN) has currently the highest performing score on TSLA with 6/7 (85.71%) price target fulfillment ratio. His price targets carry on an average of $-4.19 (-4.36%) potential downside and are fulfilled within an average of 94 days.