Roth Capital analyst Mark Breidenbach is out today with a favorable report on shares of Global Blood Therapeutics Inc (NASDAQ:GBT), after the company provided updated results for GBT440, its investigational drug for patients with sickle cell anemia (SCA), at the 2016 ASH meeting.
Breidenbach noted, “In our view, these results were not the only good news at ASH for patients with hemoglobinopathies; several presentations were devoted to new earlystage drugs for SCA, with an emphasis on preventing clinical manifestations of the disease. In a plenary session, Novartis (NVS-NC) presented a positive Phase 2 readout from crizanlizumab, which demonstrated a significant benefit relative to placebo in reducing sickle pain crises, including patients already on hydroxyurea. While we view the significant reduction in pain crises as a clinically meaningful benefit for patients, we believe GBT440 has the potential to mitigate a broad set of SCA symptoms, including pain crises.”
Overall, the analyst views the data as an important de-risking event, and as such reiterating his Buy rating, with a price target of $47, which implies an upside of 161% from current levels.
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 Mark Breidenbach has a yearly average return of -22.8% and a 26.5% success rate. Breidenbach has a 6.8% average return when recommending GBT, and is ranked #4107 out of 4240 analysts.
As of this writing, all the 4 analysts polled by TipRanks rate Global Blood stock a Buy. With a return potential of 256%, the stock’s consensus target price stands at $64.