ADC Therapeutics (ADCT) PT Raised to $8 at Stephens

Stephens analyst Sudan Loganathan raised the price target on ADC Therapeutics (NYSE: ADCT) to $8.00 (from $6.00) while maintaining a Overweight rating.

The analyst commented: "ADCT's ZYNLONTA (loncastuximab tesirine-Ipyl) is one of thirteen FDA-approved Antibody-Drug Conjugates (ADCs) for treatment of cancer. Since the accelerated approval in April 2021, the drug has consistently generated ~$70M in annual revenues by penetrating nearly 10% of the 3L+ relapsed/refractory diffuse large B-cell lymphoma (r/r DLBCL) market, despite new therapeutic technologies entering the space (e.g., bispecifics EPKINLY and COLUMVI). We view that expansion up to 2L with differentiating data could unlock significant revenue growth for the ZYNLONTA franchise. With the data we have from LOTIS-5 and LOTIS-7 using ZYNLONTA as a backbone therapy in combination for 2L DLBCL, we view the 2L opportunity is becoming de risked, making the stock highly underappreciated at these levels. We conservatively view ZYNLONTA revenues to triple the current annual run rate in 2027 with peak opportunity in DLBCL exceeding $600M. We reiterate our OW/Vol. rating and raise our PT to $8 from $6."

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