Canaccord Cuts Price Target for Agios Pharmaceuticals Inc; Remains Skeptical About AG-120 Solid Tumor Data

Canaccord Genuity analyst John Newman came out today with a research report on Agios Pharmaceuticals Inc (NASDAQ:AGIO), reducing the price target to $93 (from $103), and reiterating a Hold rating on the stock. The decreased price target comes in response to expectations of negative data for AG-120 in solid tumors during the second half of 2015.

Newman noted, “We continue to expect negative data for AG-120 in solid tumors during 2H15, at either ESMO in Vienna September 25-29, or at AACR in Philadelphia October 23-26, although Agios could choose to present at another meeting. We suspect negative data for AG-120 in solid tumors for three reasons: (1) The AG-120 trial in solid tumors including glioma has been running since March of 2014 with no data yet disclosed; (2) Agios announced the initiation of clinical work for AG-881, a molecule targeting IDH1 with greater penetration across the blood brain barrier vs. AG-120; and (3) the IDH1 mutation has been shown to be important in hematological malignancies, but evidence in solid tumors is less robust.”

According to, which measures analysts’ and bloggers’ success rate based on how their calls perform, analyst John Newman has a total average return of 14.4% and a 58.0% success rate. Newman has a -10.1% average return when recommending AGIO, and is ranked #229 out of 3624 analysts.

Out of the 8 analysts polled by TipRanks, 6 rate Agios stock a Hold, while 2 rate the stock a Buy. With a downside potential of 6.0%, the stock’s consensus target price stands at $94.83.


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