Allakos $ALLK Bullish Option Flow, Analysts Lower Price Targets

  • Post category:Biotechnology
  • Reading time:5 mins read
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ALLK stock traded up 12% in morning trade on December 23, 2021, after two analysts lowered their price targets. Bullish option flow was also detected in ALLK stock with a $10K sweep at a $22.50 strike with an expiration of 1/21/2022.

ALLK Bullish Option Flow

Allk Option Flow

Allakos price target lowered to $10 from $86 at Morgan Stanley

Morgan Stanley analyst Michael Ulz lowered the firm’s price target on Allakos to $10 from $86 and keeps an Equal Weight rating on the shares after lirentelimab failed to demonstrate improvements in symptoms in two studies in eosinophilic gastrointestinal disease, or EGID. Considering success on both co-primary endpoints is required for regulatory approval, he sees a path forward for lirentelimab in EGID as “uncertain” and he now assumes no value for EGID and “modest value” for lirentelimab in other indications, Ulz tells investors in a research note.

Allakos price target lowered to $60 from $122 at Goldman Sachs

Goldman Sachs analyst Paul Choi lowered the firm’s price target on Allakos to $60 from $122 and keeps a Neutral rating on the shares following the announcement of mixed results from its Phase 3 ENIGMA 2 study in eosinophilic gastritis/-duodenitis and the Phase 2/3 KRYPTOS study in eosinophilic esophagitis. While he said he was “encouraged by the consistent histological results” for lirentelimab in these studies, investors may question the implications for indications such as atopic dermatitis, chronic spontaneous urticaria and asthma, Choi said. He assumes greater risk to lirentelimab advancing following this “developmental hurdle,” Choi added.

Allakos downgraded to Underperform from Buy at BofA

On December 22, 2021, BofA analyst Jason Zemansky downgraded Allakos to Underperform from Buy with a price target of $12, down from $155. On Tuesday night, the company announced that its two pivotal lirentelimab EGIT studies ENIGMA 2 and KRYPTOS failed to meet their symptomatic co-primary endpoints, and Zemansky tells investors in a research note that the news is a “major surprise.” The analyst sees the likely end of both programs with little chance of broad approval.

Allakos downgraded to Market Perform from Outperform at Cowen

On December 22, 2021, Cowen analyst Joseph Thome downgraded Allakos to Market Perform from Outperform without a price target after the company announced the results of lirentelimab’s Phase II/III eosinophilic esophagitis trial and Ph. III eosinophilic esophagitis/eosinophilic duodenitis study. While the studies met the histological primary endpoints, those around symptoms did not hit statistical significance, Thome tells investors in a research note. The analyst downgraded the shares pending pipeline clarity.

Allakos’ phase 3 lirentelimab studies did not achieve statistical significance

On December 21, 2021, Allakos announced that the “reported data from ENIGMA 2, a 24-week Phase 3 randomized, double-blind, placebo-controlled study of lirentelimab in patients with biopsy-confirmed eosinophilic gastritis and/or eosinophilic duodenitis and KRYPTOS, a 24-week Phase 2/3 randomized, double-blind, placebo-controlled study of lirentelimab in patients with biopsy-confirmed eosinophilic esophagitis. Both ENIGMA 2 and KRYPTOS studies met their histologic co-primary endpoints, but did not achieve statistical significance on the patient-reported symptomatic co-primary endpoints. The safety results of the trial were generally consistent with previously reported lirentelimab studies. No new safety signals were observed. Mild to moderate infusion-related reactions occurred in 34% of lirentelimab-treated patients and 14% of placebo-treated patients.”

📺 ALLAKOS STOCK DOWN 90% | ALLK STOCK

ALLAKOS STOCK DOWN 90% | ALLK STOCK

📉 ALLK Stock Technical Analysis

Allk Stock

The long-term trend is still negative, but the short-term trend is neutral. It is advised to wait a little bit longer to see how this turns out. ALLK is part of the Biotechnology industry. There are 626 other stocks in this industry, of which 84% are performing better than ALLK. ALLK is currently trading near the lower end of its 52-week range, which is not a good sign considering the S&P500 Index is trading near new 52 week highs at the moment. Volume is considerably higher in the last couple of days. In combination with the strong move down this is a bad signal. Prices have been falling strongly lately, it is better to avoid new long positions here. The technical rating of ALLK is bad and it also does not present a quality setup at the moment. Prices have been extended to the downside lately. For a nice entry it is better to wait for a consolidation. Click here to sign up for email alerts on when ALLK stock is consolidating and is a good entry.

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