Agenus Inc. (AGEN) Surges After Zydus Agreement, Analysts Upbeat on Stock

Agenus Inc. (NASDAQ:AGEN) is among the 10 Most Undervalued Stocks to Buy for Under $5. Despite a 39% surge over the past month, it is still a bargain stock, considering its low forward price-earnings ratio.

Agenus Inc. (AGEN) Surges After Zydus Agreement, Analysts Upbeat on Stock

A research doctor, looking intently at their microscope as they try to decipher the mysteries of immuno-oncology.

The company’s shares have soared on the back of notable recent developments. On June 3, Agenus Inc. (NASDAQ:AGEN) announced that it had signed agreements worth $141 million with Zydus Lifesciences Ltd. and its subsidiaries to accelerate the clinical development of botensilimab and balstilimab (BOT/BAL).

Under the agreement, Agenus Inc. (NASDAQ:AGEN) will receive $75 million upfront for the transfer of two manufacturing assets in California. The company will also get an additional $50 million in contingent payments triggered by BOT/BAL production orders. Moreover, it will grant Zydus a license to develop and commercialize BOT and BAL in India and Sri Lanka, with a 5% royalty on net sales to be paid to Agenus.

Following the development, analysts at H.C. Wainwright upgraded Agenus Inc. (NASDAQ:AGEN)’s rating from Neutral to Buy, whereas Baird lifted the stock’s price target to $6 from $4, while maintaining a Neutral rating for its shares.

Investor sentiment in Agenus Inc. (NASDAQ:AGEN) has also been strengthened by recent quarter results, in which the company managed to significantly lower its loss per share to $1.03 from $3.04 in the prior year.

While we acknowledge the potential of AGEN 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.

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