Brean Capital Slashes Price Target for Nektar Therapeutics on Clinical Trial Setback
Brean Capital analyst Jonathan Aschoff came out today with a research note on Nektar Therapeutics (NASDAQ:NKTR), reducing the price target to $17 (from $20) and reiterating a Buy rating. The decreased price target follows the news that the company’s breast cancer candidate, NKTR-102, has failed to achieve statistical significance in the phase III BEACON study. Nektar shares are currently trading at $12.22, down $1.91 or 13.52 percent.
Aschoff noted, “Nektar will discuss the trial results with regulatory agencies to explore a potential path forward for NKTR-102 and will present full data at an upcoming medical meeting. With the launch of Movantik, potential approvals for Amikacin Inhale and BAX 855, as well as the clinical progress with NKTR-181, we are buyers on any dip following this data readout. We are taking the conservative stance of removing NKTR-102 revenue from our model and thus our target price drops to $17.”
According to TipRanks.com, which measures analysts’ and bloggers’ success rate based on how their calls perform, analyst Jonathan Aschoff has a total average return of 19.3% and a 69.5% success rate. Aschoff has a -0.2% average return when recommending NKTR, and is ranked #40 out of 3533 analysts.