Stifel downgrades ALX Oncology's ALX148 (evorpacept) to Hold, valuing it for HER2+ gastric cancer only at $100M.

Stifel downgraded ALX Oncology (NASDAQ:ALXO) to Hold, stating that its CD47 blocker drug, evorpacept, is fully valued for the de-risked HER2+ gastric cancer opportunity. Stifel believes the market opportunity may not exceed $100M, and it prefers the sidelines until further development plans emerge. The analyst sees limited evidence for positive data and unclear tractable development paths, despite potential strategic interest.