In a research report issued yesterday, Wedbush analyst Heather Behanna reiterated a Buy rating and $6.00 price target on shares of Idera Pharmaceuticals Inc (NASDAQ:IDRA), following the company’s second-quarter results and updates on its clinical progress. Idera shares are currently trading at $1.76, up $0.01 or 0.57%.

The biotech firm’s lead product candidate is IMO-8400, an antagonist to toll-like receptors (TLRs) 7, 8, and 9 with the tolerability and clinical activity to help patients battling autoimmune diseases. Behanna expects dose finding to complete this year and contends early responses from IMO-8400 could improve with an escalation in dosage. From the analyst’s viewpoint, with clinical readouts and Idera’s 3GA antisense platform both due in 2017, “Idera shares are undervalued and we recommend shares ahead of clinical catalysts in the next 12 months.”

Idera came in at the close of its second quarter with $64.1 million in cash flow, which Wedbush analyst Heather Behanna believes will be “sufficient to see it through 3Q17.” On the back of these results with clinical progress for pipeline drugs at the forefront, Behanna reiterates a Buy rating with a price target of $6, marking a close to 243% increase from where the stock is currently trading.

Idera leaves this quarter with a loss of about $01.11 in earnings per share, evenly corresponding with both the Street’s and Behanna’s predictions. Behanna acknowledges though, “…we believe Idera may bolster its balance sheet by non-dilutive financing via partnerships or a capital raise.” The analyst feels positive that Idera’s first internal candidate from its 3GA antisense platform could be a real game-changer, set to commence this month and development to start in 2017. Currently not factored in valuation, Behanna asserts that this program could act as a driver in momentum for Idera shares come 2017.

According to TipRanks, Heather Behanna is ranked #1,188 out of 4,071 analysts. Behanna upholds a success rate of 44% and on average, earns 5.1% in annual returns. However, the analyst loses 39.2% on average when recommending IDRA.

TipRanks analytics show that Idera Pharmaceuticals stock is a Buy. In the last 12 months, 3 analysts rated the stock a Buy with an average price target of $5.00.

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