FBR analyst Vernon Bernardino was out today with a mix report on shares of Galena Biopharma Inc (NASDAQ:GALE), reiterating an Outperform rating while slashing the price target to $2.00 (from $5.00), which implies an upside of 327% from current levels.

The analyst highlights four key points which point to unrecognized value in Galena’s pipeline:

  • The value of GALE-301/GALE-302 and GALE-401 has largely been ignored.
  • Albeit data are early, results with GALE-301/GALE-302 points to a promising pipeline asset.
  • GALE-401 appears to be a high-value Phase III ready asset that may attract potential partners.
  • PRESENT was bad but NeuVax is not dead.

Bernardino emphasized his bullish stance on GALE, noting, “We see GALE-301/GALE-302 for ovarian cancer, Phase III ready GALE-401 for thrombocythemia, the two ongoing Phase II studies in breast cancer with NeuVax in combination with Herceptin, which are sponsored and partially funded by Roche, and lastly, the planned NeuVax VADIS study in ductal breast carcinoma in situ (DCIS) as clinical programs with nascent value creating potential. We think the negative results from PRESENT are priced into the stock and see upside potential from the ongoing detailed review of un-blinded PRESENT results.”

As usual, we recommend taking analyst notes with a grain of salt. According to TipRanks.com, which measures analysts’ and bloggers’ success rate based on how their calls perform, analyst Vernon Bernardino has a yearly average return of -21.5% and a 25% success rate. Bernardino has a -47.4% average return when recommending GALE, and is ranked #3990 out of 4075 analysts.

Out of the 6 analysts polled by TipRanks, 4 rate Galena stock a Buy, while 2 rate the stock a Hold. With a return potential of 472%, the stock’s consensus target price stands at $2.68.