In a research report issued Monday, Cowen analyst Chris Shibutani reiterated an Outperform rating on shares of Juno Therapeutics Inc (NASDAQ:JUNO), while reducing the price target to $51 (from $55), after holding a meeting with management in light of recent FDA clinical hold of ROCKET trial.
Shibutani noted, “When asked specifically, JUNO stated that the FDA has not expressed concern with regard to any other JCAR construct or ongoing clinical trial program. Management reiterated that their strategy with JCAR015 has been the “fast to market” strategy, with the company expecting to glean significant learnings over the course of development. Juno continues to expect that JCAR017 will be the “best in class” platform, development of which we estimate trails JCAR015 by roughly one year.”
“The FDA’s clinical hold of ROCKET is a setback that appears manageable. The scope of the safety issue appears contained (JCAR015+conditioning regimen) and we see JUNO’s response plans as reasonable. We see a delay in timelines, not a failure of the adult ALL program. Solid NHL data update shouldn’t be overlooked. Near-term uncertainty creates an opportunity,” the analyst concluded.
According to TipRanks.com, which measures analysts’ and bloggers’ success rate based on how their calls perform, analyst Chris Shibutani has a yearly average return of -4.5% and a 40.0% success rate. Shibutani has a -13.2% average return when recommending JUNO, and is ranked #3020 out of 4035 analysts.
Out of the 12 analysts polled by TipRanks, 8 rate Juno Therapeutics stock a Buy, while 4 rate the stock a Hold. With a return potential of 96%, the stock’s consensus target price stands at $54.75.