Shares of Juno Therapeutics Inc (NASDAQ:JUNO) fall as Wall Street continues to debate the unexpected patient deaths and clinical hold for the company’s Phase II pivotal trial of JCAR015 in adult ALL patients.
Subsequently, Cowen analyst Chris Shibutani is placing his price target under review, while reiterating an Outperform rating on the stock.
Shibutani noted, “Uncertainty has increased, but we see upside from current levels given the opportunity for JCAR017 in DLBCL which we see as unaffected. Data at ASH (Dec. 5) becomes even more important (65% of our valuation).”
“We note that the JCAR015 opportunity contributed approximately 25% of value according to our DCF based analysis. In the immediacy of these events, we recognize the challenges presented by acute uncertainty, but remain productive on the potential for the stock to recover from today’s initial sell-off given our positive inclination towards JUNO’s additional ongoing product development efforts,” the analyst added.
As usual, we like to include the analyst’s trackrecord when reporting on new analyst notes. 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 16.3% and a 76% success rate. Shibutani has a -2.8% average return when recommending JUNO, and is ranked #319 out of 4240 analysts.
Out of the 14 analysts polled by TipRanks, 10 rate Juno Therapeutics stock a Buy, while 4 rate the stock a Hold. With a return potential of 115%, the stock’s consensus target price stands at $46.67.