We Believe Galena’s Stock Is Attractive, Says MLV; Raises PT To $5
In a research report issued today, MLV analyst Vernon Bernardino maintained a Buy rating on Galena Biopharma (NASDAQ:GALE) and raised his price target to $5 (from $3), which represents a potential upside of 172% from where the stock is currently trading.
Bernardino noted, “We believe Galena Biopharma has overcome the external challenges of 1H14, and point to subsiding litigation risk and significant catalysts ahead in 2015, as reasons for encouraging investors to take a fresh look at the stock, which continues to underperform vs. the broader Nasdaq Biotechnology Index in 4Q14 (down 9% vs. up 9%, respectively).”
The analyst sees “growing value in the NeuVax clinical program, promising early results from mid-stage products, and a commercial oncology presence that is poised to grow in anticipation of NeuVax’s approval in 2018.” He concluded, “We therefore reiterate our Buy rating and, using a lower discount rate to reflect decreased risk (from 35% to 30%), we raise our PT from $3 to $5. We believe the stock attractive for speculative investors with medium-term horizons.”
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 17.1% and a 11.1% success rate. Bernardino has a -27.4% average return when recommending GALE, and is ranked #775 out of 3377 analysts.