Bank of America Lifts Target on Xencor Amid Broader Biotech Sector Optimism
In a recent update to its US biopharmaceuticals coverage, Bank of America signaled growing, albeit measured, confidence in the sector's recovery, with clinical-stage developer Xencor (NASDAQ: XNCR) among the names seeing a target price increase.
The bank lifted its price objective for Xencor to $20 from $17, while maintaining a Neutral rating. Analysts pointed to a confluence of stabilizing factors buoying biotech, including rewards for positive clinical data, a pickup in merger and licensing deals among larger players, improved access to capital for research, and a currently limited impact from drug pricing reforms.
"The fundamental pieces are starting to fall into place for a sector rebound," the BofA note stated, while also cautioning that the durability of this recovery remains a key question for the longer term.
This move follows a similar adjustment by Barclays in mid-December, which raised its Xencor target to $26 from $23 and reaffirmed an Overweight rating, citing revised sector valuations as part of its 2026 outlook.
Xencor is focused on developing engineered monoclonal antibody therapies for a range of conditions including cancer, autoimmune disorders, and asthma. The company's platform technology, designed to enhance the efficacy of antibody treatments, places it in a competitive yet potentially lucrative segment of the drug development market.
Market Voices: Analyst Action Sparks Debate
Dr. Anya Sharma, Portfolio Manager at Clearwater Biotech Fund: "The sequential target raises from major banks are noteworthy. They reflect a recognition that the brutal valuation reset of the past two years is over for quality names with solid science. Xencor's platform has legitimate partnership potential, which isn't fully priced in."
Michael Trent, independent biotech analyst: "Let's not get carried away. A $3 target bump on a Neutral rating is tepid endorsement at best. This feels more like the banks playing catch-up to a modest sector bounce than a ringing endorsement of Xencor's specific pipeline. Investors should focus on clinical data, not price target theatrics."
Sarah Chen, Life Sciences Consultant: "The broader context here is critical. Improved capital access and M&A activity are lifelines for pre-revenue biotechs. If this trend holds, it validates the business model for dozens of companies like Xencor that rely on partnerships and strategic deals to fund development."
"Dave," a retail investor on a biotech forum: "This is just noise. These banks downgraded everyone to the basement in 2022 and now they're creeping targets up? Xencor burns cash. Show me a Phase 3 win or a major deal, then we'll talk. Until then, it's all just analyst pencil-pushing."