Canaccord Pounds the Table on Kite Pharma Inc (KITE)
Canaccord analyst John Newman was out pounding the table on Kite Pharma Inc (NASDAQ:KITE), reiterating a Buy rating and price target of $90, which implies an upside of 36% from current levels.
Newman wrote, “KITE will present Phase 1 open label data for KTE-C19 in DLBCL at ASH in December, with the Phase 2 portion to follow, but we await key design details, which we believe will be critical. Importantly, we believe both the intensity and identity of the initial chemotherapy conditioning regimen will be very important, as well as any potential dose escalation. High intensity conditioning before CART administration has been shown to be important in both expansion and efficacy. Assuming KITE’s pivotal study is similar to NCI’s design, we would expect similar results.”
Bottom line: “We would expect KITE shares to continue to appreciate into ASH in December in anticipation of positive Phase 1 data, but recognize that temporary weakness may appear should the response rate be numerically lower than NCI data. In any event, we expect expeditious FDA approval for KTE-C19. We also expect positive solid tumor data for TCRs on 2016 to continue to drive shares higher.”
According to TipRanks.com, which measures analysts’ and bloggers’ success rate based on how their calls perform, analyst John Newman has a total average return of 10.3% and a 51.7% success rate. Newman has a 23.1% average return when recommending KITE, and is ranked #354 out of 3731 analysts.
All the 5 analysts polled by TipRanks rate Kite Pharma Inc stock a Buy. With a return potential of 27.1%, the stock’s consensus target price stands at $84.