Overview
Truist Securities has reiterated its Buy rating on Xencor, Inc. (NASDAQ: XNCR) and reaffirmed a $29.00 price target, citing increased momentum behind TL1A×IL-23p bispecific candidates in the immunology and inflammation space. With XNCR trading at $11.74, Truist's target represents almost 147% potential upside from the quoted share price. InvestingPro valuation data referenced by market observers also indicates the stock appears undervalued on a Fair Value basis, while analyst price targets in the market span from $18 to $43.
Industry signals supporting the view
The research note highlights several external developments that Truist views as supportive of Xencor's bispecific franchise. Examples cited include a $1.3 billion acquisition by Boehringer Ingelheim of a Chinese TL1A bispecific asset, Caldera's $113 million Series A financing, and comments from Merck that have drawn investor attention to the TL1A program landscape. Truist also pointed to new bispecific data presented at ECCO 2026 and to heightened investor focus on phase III TL1A programs as contributing to a more favorable environment for companies working in this modality.
Xencor's internal program and strategic updates
Within its coverage commentary, Truist described Xencor's TL1A×IL-23p19 asset as "both mechanistically compelling and meaningfully de-risked," signaling confidence in the science backing the candidate. The firm noted potential for a share re-rating as Xencor progresses on clinical execution and highlighted a "burgeoning portfolio which also includes promising assets in oncology & beyond."
Xencor's own disclosures and plans factor into the outlook. The company has outlined pipeline priorities for 2026 centered on its XmAb platform, with a stated aim to present key clinical data for five wholly owned drug candidates. Those candidates reportedly include four T-cell engagers directed at solid tumors and autoimmune indications, as well as two therapies aimed at inflammatory bowel disease.
Intellectual property and revenue implications
Xencor announced issuance of U.S. Patent 12,492,253, a development that extends the company's royalty term on Ultomiris sales in the United States by about three years, moving the royalty period to December 2028. Based on consensus sales forecasts, the company expects this extension to generate an incremental $100 million to $120 million in royalty revenue.
Analyst coverage notes
In its commentary, Truist reiterated its Buy rating and $29.00 price target and elsewhere in the reporting also indicated initiation of coverage on Xencor with the same Buy rating and $29.00 target. The firm attributed its constructive view to validation of Xencor's antibody platform through commercial approvals of products such as Ultomiris and Monjuvi, and to the company's advancing clinical-stage portfolio and strategic revenue initiatives.
Contextual takeaways
The confluence of external TL1A-related deal activity, new clinical data presented at ECCO 2026, Xencor's planned clinical disclosures for 2026, and a patent extension affecting near-term royalty streams form the basis for Truist's reiterated Buy stance and $29 price objective.