In a research report released today, MLV analyst Arlinda Lee maintained a Buy rating on shares of Karyopharm Therapeutics Inc (NASDAQ:KPTI), and reduced the price target to $42 (from $54), which represents a potential upside of 235% from where the stock is currently trading. The decreased price target comes after the company reported unexpected modifications to SIRRT, the company’s open-label trial to assess overall survial of selinexor vs physician’s choice in 150 relapsed/refractory AML patients over 60 years old ineligible for intensive chemotherapy.
Lee noted, “We incorporate a 6-mo delay to the AML program and lower our estimated probability for success from 40% to 10%, resulting in $1/share (prior $5) for the AML portion of our sum-of-the-parts (SOTP) valuation. Because diffuse large B-cell lymphoma (DLBCL), Myeloma, and Richter’s patients are less myelosuppressed and are treated with less myelosuppressive agents, we believe the sepsis “signal” will not manifest in other hematological malignancies, although we also modestly adjust our probability estimates for DLBCL and myeloma by 5% to account for the increased risk, resulting in a probability-adjusted SOTP of $13 and $19, respectively (prior $14 and $21).”
According to TipRanks.com, which measures analysts’ and bloggers’ success rate based on how their calls perform, analyst Arlinda Lee has a total average return of -5.1% and a 39.1% success rate. Lee has a -61.0% average return when recommending KPTI, and is ranked #3431 out of 3731 analysts.
All the 4 analysts polled by TipRanks rate Karyopharm stock a Buy. With a return potential of 332.8%, the stock’s consensus target price stands at $54.25.