Barclays Initiates Coverage of Celldex Therapeutics (CLDX) With an Underweight Rating

Celldex Therapeutics, Inc. (NASDAQ:CLDX) is one of the best small cap stocks with the highest upside. Barclays initiated coverage of Celldex Therapeutics, Inc. (NASDAQ:CLDX) with an Underweight rating on October 13, assigning a $25 price target to the shares. The rating came as part of the firm’s launch of eight companies across rare diseases, inflammation and immunology, and oncology.

The firm told investors in a research note that although there is binary risk to small and mid-cap biotechnology names, investments supported by de-risked mechanisms of action and previous clinical data represent risk-reward skewed to the upside.

Barclays also told investors that the market is favorable towards new mechanisms and modes of action that potentially improve dosing frequency and compliance.

It contended that although Celldex Therapeutics, Inc. (NASDAQ:CLDX) is continually exhibiting encouraging clinical data for its lead molecule barzolvolimab, the shares fail to offer meaningful upside through 2026 because of safety liabilities and a competitive landscape.

Celldex Therapeutics, Inc. (NASDAQ:CLDX) develops, manufactures, and commercializes novel therapeutics for human health care. The company’s pipeline includes Varlilumab, CDX-1140, CDX-301, and CDX-3379.

While we acknowledge the potential of CLDX as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you’re looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

READ NEXT: 30 Stocks That Should Double in 3 Years and 11 Hidden AI Stocks to Buy Right Now.

Disclosure: None. This article is originally published at Insider Monkey.