MLV Reiterates Buy on NeoStem Inc Following Expansion of Contract Agreement With Kite Pharma
MLV’s healthcare analyst Vernon Bernardino came out with an optimistic view on Neostem Inc (NASDAQ:NBS), after the company announced the expansion of its existing contract manufacturing services agreement with Kite Pharma Inc (NASDAQ:KITE). The analyst reiterated a Buy rating on NBS with a $14 price target, which implies an upside of 365% from current levels.
Bernardino noted, “We view the news as positive, as it continues NeoStem’s economic relationship with a leading company focused on an emerging personalized immunotherapeutic approach. Kite Pharma’s products use its proprietary engineered autologous cell therapy platform, eACT, which has generated T cells genetically redirected using chimeric antigen receptors (CAR-Ts) and TCRs, which consist of T cells redirected using designer receptors.”
“The expanded partnership also further validates the recognized expertise of NeoStem’s cell products development and manufacturing subsidiary, PCT; helps to grow PCT’s facilities in Mountain View, CA; and, in our view, solidifies NBS’s position as a leader in contract cell products services. We make no changes to our models, as we had expected such announcements in 2015 and had already projected demand for similar cell products services from PCT that grow this year and beyond.”, the analyst added.
According to TipRanks.com, which measures analysts’ and bloggers’ success rate based on how their calls perform, analyst Vernon Bernardino has a total average return of -7.3% and a 43.1% success rate. Bernardino has a -22.2% average return when recommending NBS, and is ranked #3449 out of 3575 analysts.