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Roth Capital Maintains Buy On Nektar Therapeutics Ahead Of 4Q14 Update


Roth Capital analyst Debjit Chattopadhyay weighed in on Nektar Therapeutics (NASDAQ:NKTR), as the company will announce its financial results for the fourth-quarter on February 24, 2015. The analyst reiterated a Buy rating with a $21 price target on the stock, which implies an upside of 54% from current levels.

Chattopadhyay noted, “For 4Q we anticipate an operating loss of $(0.39). For FY14 we are modeling an operating loss of $(0.49) on revenue of $193.5M. For 2015 we expect revenue of $237M and an operating loss of $(0.05)/share. Movantik U.S. launch is expected to commence during 2Q15, and we are conservatively modeling $89M in net sales.”

Furthermore, “Phase 3 BECON study data is expected during 1Q15. We have modest expectations heading into the data and are attributing 40% probability of success. We expect U.S. launch during 1Q16 and conservatively estimate at least 40% of Advate’s $2B franchise to switch to BAX-855, which could generate up to $100M in annual royalty for NKTR.”

Bottom line, “We anticipate that BEACON continues to be an overhang, but based on its robust pipeline and multiple commercial products, we believe NKTR is not leveraged on NKTR-102 success.”

According to TipRanks.com, which measures analysts’ and bloggers’ success rate based on how their calls perform, analyst Debjit Chattopadhyay has a total average return of 9.6% and a 51.5% success rate. Chattopadhyay has a -4.8% average return when recommending NKTR, and is ranked #515 out of 3479 analysts.