Barclays initiated coverage of Xencor Inc. (NASDAQ: XNCR) with an Underweight rating and a $6.00 price target.

The firm acknowledged Xencor's history as an innovator in antibody technology and its royalty-generating partnerships on commercialized drugs such as AstraZeneca's Ultomiris and Incyte's Monjuvi/Minjuvi. These collaborations have supported a steady revenue stream and a strong balance sheet.

However, analysts expressed disappointment in the company's internal pipeline, which they said had failed to generate sufficient valuation upside beyond its royalty base.

Xencor is expected to release early dose-escalation data later this year for its lead oncology program, XmAb819, in clear cell renal cell carcinoma. Barclays noted the results would likely be too preliminary to have a meaningful impact on the stock.