Xencor (XNCR): Rethinking Valuation After a Recent Share Price Rebound

Xencor (XNCR) has struggled this year, but the stock quietly jumped nearly 50% over the past quarter. This move is drawing fresh attention to whether its antibody platform and licensing deals might be mispriced by the market.

See our latest analysis for Xencor.

That surge sits against a tougher backdrop, with the share price down sharply year to date and the 1 year total shareholder return also negative. This suggests recent momentum reflects shifting expectations around pipeline risk rather than a sustained rerating so far.

If Xencor’s rebound has you rethinking where you hunt for biotech ideas, this could be a good moment to explore other healthcare stocks on Simply Wall St.

With shares still well below analyst targets despite a recent rally, investors are asking the core question: is Xencor a misunderstood value with upside left, or has the market already priced in its future growth?

Most Popular Narrative: 45% Undervalued

With the most followed fair value set at 28.25 dollars against a last close of 15.55 dollars, the narrative sees sizeable upside still on the table.

The robust and flexible XmAb platform allows for modular drug development and the creation of differentiated assets, expected to reduce development costs and timelines, directly benefiting future operating margins and net profitability.

Read the complete narrative.

Curious how a loss making biotech ends up with premium style earnings multiples and double digit growth baked in? Want to see which aggressive assumptions power that 28.25 dollar fair value and turn today’s price into a supposed discount? The full narrative lays out the exact revenue runway, margin shift and earnings leap that need to fall into place.

Result: Fair Value of $28.25 (UNDERVALUED)

Have a read of the narrative in full and understand what's behind the forecasts.

However, clinical setbacks in Xencor’s TL1A and T cell engager trials, or slower than expected patient uptake, could quickly challenge the current undervaluation case.

Find out about the key risks to this Xencor narrative.

Build Your Own Xencor Narrative

If you see the story differently, or just want to stress test the assumptions yourself, you can spin up your own in minutes: Do it your way.

A great starting point for your Xencor research is our analysis highlighting 1 key reward and 2 important warning signs that could impact your investment decision.

Looking for more investment ideas?

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• Explore potentially overlooked bargains by targeting companies flagged as undervalued based on future cash flows through these 914 undervalued stocks based on cash flows.
• Follow structural growth trends by focusing on innovators shaping medicine and diagnostics via these 29 healthcare AI stocks.
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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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