Stock Price & Analysis

Based on the strong analyst consensus with a $117.15 average price target and the company's promising clinical results, it is recommended to buy ACLX stock. The significant upside potential and optimistic outlook suggest favorable conditions for investment.

Based on current market trends and technical analysis, ACLX stock is predicted to reach a price of $65 by the end of 2025. This forecast considers the stock's recent decline and potential resistance levels. The price target is supported by the stock's current volatility and market sentiment.

The S1 support level for ACLX Stock is $68.79 ,The R1 resistant level for ACLX Stock is $73.11.

As of the end of day on 2025-03-24, the price of ACLX Stock was $72.45.

The target price for ACLX Stock according to analyst rating is 116.93, with the highest price target at 134.00 and the lowest at 104.00. Analysts have a Strong Buy rating on ACLX Stock overall.

The market cap of ACLX is $4.0B.

Analysis and Insights

Valuation Metrics:

Arcellx Inc (ACLX) currently has a high EV/EBITDA ratio of 38.06 and a PS ratio of 28, indicating a premium valuation compared to its peers. The stock is trading at $70.11, with a forward P/E ratio that is not directly available but implied to be elevated given the negative earnings per share (EPS) of -0.87 in Q4 2024.

Financial Performance:

The company reported declining revenues over the past four quarters, from $39.26 million in Q1 2024 to $15.27 million in Q4 2024. Net income has also been consistently negative, with Q4 2024 showing a net loss of $47.08 million, leading to a net margin of -22.84%. This raises concerns about profitability and cash flow sustainability.

Analyst Sentiment:

Despite the challenging financials, analysts maintain a Strong Buy rating with an average price target of $117.15, suggesting a 63.66% upside from current levels. However, the high valuation multiples and negative earnings indicate that the stock may be overvalued relative to its fundamentals.

Conclusion:

Based on the declining revenues, significant net losses, and elevated valuation metrics, ACLX appears overvalued. While analyst sentiment remains optimistic, the current financial performance does not justify the premium valuation. Investors should exercise caution and consider waiting for improved profitability before investing.

Arcellx, Inc. is a clinical-stage biotechnology company. The Company is focused on the development of controllable cell therapies for the treatment of patients with cancer and other incurable diseases. The Company’s lead program is a BCMA-targeting ddCAR product candidate called CART-ddBCMA, which is being evaluated in its pivotal Phase II iMMagine-1 trial in patients with relapsed or refractory multiple myeloma (rrMM). The Company is also developing two clinical-stage ARC-SparX programs in Phase I trials; ACLX-001, which targets BCMA in rrMM, and ACLX-002, which targets CD123 in relapsed or refractory acute myeloid leukemia (AML) and high-risk myelodysplastic syndrome (MDS). Outside of multiple myeloma (MM), the Company advances its wholly owned portfolio of clinical-stage, ACLX-002, and preclinical pipeline programs incorporating its D-Domain technology. D-Domain, is designed to overcome the limitations of traditional Chimeric Antigen Receptor T-cells (CAR-Ts).

Based on analyst projections and the company's strong financial position, Arcellx Inc (ACLX) is predicted to reach approximately $140 per share by 2030. This forecast is supported by the company's promising clinical results with its Anito-cel therapy and strategic partnerships, which position it for sustained growth in the biotechnology sector. The current average analyst target of $117.15, combined with long-term growth potential, suggests a bullish outlook for ACLX stock.

ACLX has a total of 130 employees.