HCW cuts Autolus PT to $24 from $41

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H.C. Wainwright lowered its price target for Autolus Therapeutics plc (NASDAQ:AUTL) to $24 from $41 after significant changes to its pipeline and timelines were disclosed in the company’s second quarter results. The stock closed at $11.33 on Aug. 9.

“While issues with UK-based lead shareholder’s fund and manufacturing snafus were not something we had insights into until recently, competitive factors impacting the pipeline is something we should have foreseen and remains our mistake,” writes analyst Debjit Chattopadhyay.

In addition, a five-month manufacturing delay has pushed out readouts and study initiations for the company's most compelling assets, namely AUTO4 and AUTO5, both of which are differentiated, novel, and first-in-class CAR-T programs in T-cell lymphomas, he added.

“Given the sell-off in the stock, which potentially reflects the current challenges, we see little value in moving to the sidelines, especially given the promise of AUTO1; differentiation of AUTO4/5; and a slew of next generation programs that are likely to be unveiled over the next six-to-12 months, assuming management gets its act together,” Mr. Chattopadhyay said.

Stephen Kilmer