FBR Downgrades Galena Biopharma Inc (GALE) Right as Stock Skyrockets 30%
This morning, the firm revealed an independent group of experts has judged its breast cancer combination treatment of NeuVax with chemotherapy drug trastuzumab in two Phase 2 trials to have zero safety concerns, which sent investors cheering today.
FBR analyst Vernon Bernardino unfortunately missed the memo that Galena Biopharma Inc (NASDAQ:GALE) is catapulting close to 30% right after his decision today to take a misstep to the sidelines. While Bernardino found himself with tunnel vision honing in on Dr. Mark Schwartz’s resignation as president, CEO, and member of the board of directors as of January 31st, it might appear his decision to leave the bullish party on the biotech firm was short-sighted. Nonetheless, the analyst downgrades from an Outperform rating to a Market Perform rating on shares of GALE while chopping the price target from $11 to $4, which represents a just under 119% increase from where the stock is currently trading.
“An interim CEO, who will oversee Galena as it explores strategic alternatives with assistance from an independent advisory firm, is expected to be appointed in the next several weeks. At this point, it is not certain whether Galena will continue clinical development of its pipeline on its own, outlicense its assets, or undergo restructuring of its corporate operations before a final decision is made in 2H17. We believe the high value of Galena’s pipeline assets remains under-appreciated; however, due to near-term uncertainty, we are moving to the sidelines and lowering our rating from Outperform to Market Perform with a new price target of $4 versus our previous $11 price target,” Bernardino concludes, with a lone cautious call in the midst of celebration today.
As usual, we recommend taking analyst notes with a grain of salt. According to TipRanks, Vernon Bernardino is ranked #4,315 out of 4,373 analysts. Bernardino has 23% success rate and forfeits 20.3% in his annual returns. When suggesting GALE, Bernardino loses 67.4% in average profits on the stock.
TipRanks analytics exhibit GALE as a Buy. Out of two analysts polled by TipRanks in the last 3 months, 1 is bullish on Galena stock and 1 remains sidelined. With a return potential of nearly 817%, the stock’s consensus target price stands at $11.00.