This Analyst Has Had Enough with Galena Biopharma Inc (GALE)
Investors weren’t impressed with Galena Biopharma Inc (NASDAQ:GALE) latest announcement that CEO Dr. Mark Schwartz’s would stand down, and at least one analyst has had enough. Maxim analyst Jason Kolbert downgraded the stock on Thursday, knocking his rating from Buy to Hold, while removing his price target (prior $4.00). Galena shares are currently trading at $1.09, down $0.19 or -15%.
The Board of Director announced that it will engage an independent advisory firm to evaluate the company and determine the best strategic path forward; including sale of the company, a merger or reverse merger, or remain a stand-alone entity.
Kolbert commented, “From a clinical perspective, we believe that NeuVax and GALE-401 have potential in breast cancer and essential thrombocythemia (ET), respectively. However, from a corporate perspective, the uncertainty about the company’s future and no visibility on timing around resolution of these issues, we believe it is prudent to downgrade the shares to Hold.”
According to TipRanks, which measures analysts’ and bloggers’ success rate based on how their calls perform, analyst Jason Kolbert has a yearly average return of -16% and a 28.5% success rate. Kolbert has a -36.6% average return when recommending GALE, and is ranked #4310 out of 4373 analysts.
Out of the 5 analysts polled in the past 12 months, 3 rate Galena Biopharma stock a Hold, while 2 rate the stock a Buy. With a return potential of 401.5%, the stock’s consensus target price stands at $5.47.