Recommendation: Speculative Buy
| Entry Date | Symbol | Recommendation | Entry Price (USD) | Target 1 (USD) | Target 2 (USD) | Holding Duration | Potential Upside* |
|---|---|---|---|---|---|---|---|
| 19 Dec, 24 | ACET | Speculative Buy | USD 0.8954 | USD 0.96 | USD 1.05 | 17 days | 17.3% |
*Potential Upside (%) indicates the expected percentage increase from the Entry Price to the Target 2 Price.
Data Powered by EOD Historical Data (“EODHD”).
Adicet Bio, Inc., a clinical stage biotechnology company, discovers and develops allogeneic gamma delta T cell therapies for autoimmune diseases and cancer. The company offers gamma delta T cells engineered with chimeric antigen receptors (CARs) to facilitate durable activity in patients. Its lead product candidate is ADI-001, an allogeneic gamma delta T cell therapy expressing a CAR targeting CD20, which is in Phase I clinical trial for the treatment of autoimmune diseases and relapsed or refractory aggressive B cell non-Hodgkin's lymphoma. The company is also developing ADI-270, an armored gamma delta CAR T cell product candidate targeting renal cell carcinoma for treating other CD70+ solid tumor and hematological malignancies indications. The company was founded in 2014 and is based in Boston, Massachusetts.
Strong Financial Position: Adicet Bio, Inc. reported USD 202.1 million in cash, cash equivalents, and short-term investments, providing sufficient liquidity to fund operations through the second half of 2026, ensuring financial stability.
Reduced Net Loss: The company’s net loss narrowed to USD 30.5 million in Q3 2024, compared to USD 49.9 million in the same period in 2023, driven by reduced non-cash goodwill impairment expenses, reflecting improved financial performance.
Net Loss: Despite narrowing, the company still reported a significant net loss of USD 30.5 million, which could impact future profitability and cash flow management.
Rising R&D Expenses: Total research and development expenses increased to USD 26.3 million, reflecting a slight rise due to laboratory and personnel costs, potentially indicating higher operational expenses in the future.
Key investment risks for Adicet Bio include the potential for delays in clinical trial timelines, uncertain regulatory outcomes, and the financial burden of continued high research and development costs, which may impact the company's ability to achieve profitability in the near term.
| Entry Price | Support* | Target 1 | Target 2 |
|---|---|---|---|
| 0.8954 | 0.8 | 0.96 | 1.05 |
Data Source: REFINITIV, Analysis: StockNextt
*Support can be considered as an indicative stop-loss, and if prices move below that level on closing basis individuals may evaluate exiting the position depending on their risk appetite, previous holdings, and other factors considered. The support and resistance levels may need to be re-evaluated within 4-6 weeks’ time frame depending on the stock price movements from the date of recommendation on the stock.
Technical Observation (on the daily chart):
The Relative Strength Index (RSI) over a 14-day period stands at a value of 32.89, near oversold zone, with expectations of a bullish divergence and upward momentum from the near important support zone of USD 0.85-USD 0.90. Additionally, the stock's current positioning is below both the 21-period SMA and 50-period SMA, which may serve as dynamic short to medium-term support levels.
As per the above-mentioned price action, recent key business and financial updates, momentum in the stock over the last month, and technical indicators analysis, a ‘Speculative Buy’ rating has been given for Adicet Bio, Inc. (NASDAQ: ACET) at the closing market price of USD 0.8954 as of December 18, 2024.
Data Powered by EOD Historical Data (“EODHD”).
Sector: Healthcare Industry: Biotechnology
| Company | Change (USD) | Price (USD) | Trailing PE (x) | Forward PE (x) | Price Sales TTM (x) | Price to Book Value (x) | Enterprise Value to Revenue (x) | Enterprise Value to EBITDA (x) |
|---|---|---|---|---|---|---|---|---|
| ACET Adicet Bio Inc |
0.04 4.64% | 0.79 | - | - | 9.72 | 0.35 | 2.14 | -1.2112 |
| NVO Novo Nordisk A/S |
-0.8143 1.17% | 68.63 | 41.58 | 31.15 | 2.13 | 32.99 | 2.11 | 4.70 |
| NONOF Novo Nordisk A/S |
0.0025 0.0036% | 68.96 | 41.06 | 31.25 | 2.08 | 33.11 | 2.11 | 4.70 |
| VRTX Vertex Pharmaceuticals Inc |
0.03 0.0062% | 484.85 | 29.67 | 24.33 | 10.38 | 5.83 | 9.33 | 20.00 |
| REGN Regeneron Pharmaceuticals Inc |
-7.26 1.14% | 626.97 | 29.07 | 20.12 | 7.57 | 3.82 | 6.95 | 19.42 |
Data Powered by EOD Historical Data (“EODHD”).
Related Risks: This report may be looked at from high-risk perspective and recommendations are provided are for a short duration. Recommendations provided in this report are solely based on technical parameters, and the fundamental performance of the stocks has not been considered in the decision-making process. Other factors which could impact the stock prices include market risks, regulatory risks, interest rates risks, currency risks, social and political instability risks etc.
Note 1: Past performance is not a reliable indicator of future performance.
Note 2: The reference date for all price data, currency, technical indicators, support, and resistance levels is December 18, 2024. The reference data in this report has been partly sourced from REFINITIV.
Support: A level at which the stock prices tend to find support if they are falling, and a downtrend may take a pause backed by demand or buying interest. Support 1 refers to the nearby support level for the stock and if the price breaches the level, then Support 2 may act as the crucial support level for the stock.
Target: A level at which the stock prices tend to find resistance when they are rising, and an uptrend may take a pause due to profit booking or selling interest. Target 1 refers to the nearby resistance level for the stock and if the price surpasses the level, then Target 2 may act as the crucial resistance level for the stock.
Stop-loss: It is a level to protect further losses in case of unfavourable movement in the stock prices.
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