In a research report issued yesterday, Wells Fargo analyst Jim Birchenough reiterated an Underperform rating on shares of ZIOPHARM Oncology Inc. (NASDAQ:ZIOP), with a valuation range of $5.00 to $8.00, after the oncology biotech firm announced first-quarter operating results and provided an update on its clinical progress.
Birchenough wrote, “We are maintaining our Underperform rating on shares of ZIOP following review of its 1Q16 update. With near term focus on the update for Ad-RTS-IL12 in GBM, we believe that patient numbers are insufficient to make any conclusion and that randomized phase 2 data would be more appropriate given historical failures in GBM. We would again point to IL13 targeted Cintredekin which failed in phase 3 after demonstrating median overall survival (OS) of >1 year in phase 2. Aspirations around adoptive cellular therapy (ACT) approaches are laudable but early, and given inferior results for its CD19 CAR-T, and with 100 new investigational new drug (IND) applications for novel CAR-T’s alone we see an increasingly crowded, and fragmented field with no data to support clear differentiation for ZIOP.”
“1Q16 net loss per share of $0.09 was in-line with Consensus and the company ended the quarter with $124.8 million in cash, sufficient through year-end 2017,” the analyst added.
According to TipRanks.com, which measures analysts’ and bloggers’ success rate based on how their calls perform, analyst Jim Birchenough has a yearly average return of 21.1% and a 42.0% success rate. Birchenough has a -25.4% average return when recommending ZIOP, and is ranked #80 out of 3913 analysts.
Out of the 5 analysts polled by TipRanks, 1 rate Ziopharm stock a Buy, 3 rate the stock a Hold and 1 recommends a Sell. With a return potential of 67%, the stock’s consensus target price stands at $12.67.