In a research report released Friday, FBR analyst Vernon Bernardino reiterated an Outperform rating on shares of Galena Biopharma Inc (NASDAQ:GALE), while adjusting the price target to $11.00 (from $40.00), following recent reverse 1-for-20 stock split. Galena shares are currently trading at $2.92, up $0.18 or +6.57%.
Bernardino noted, “As a reminder, 2016 Galena’s Independent Data Monitoring Committee (IDMC) completed an interim analysis of GALE’s PRESENT Phase III study with NeuVax in breast cancer (BC) in June 2016 and recommended that PRESENT be stopped due to futility. After a thorough investigation of the results, Galena identified several factors that may preserve the future value of NeuVax. We removed its contribution in our models, resulting in a price target reduction to $11 versus our prior $40 (post reverse 1-for-20 stock split). We think the insights gained from PRESENT and positive results from ongoing combination studies could prompt us to revisit our assumptions.”
As usual, we recommend taking analyst notes with a grain of salt. According to TipRanks.com, which measures analysts’ and bloggers’ success rate based on how their calls perform, analyst Vernon Bernardino has a yearly average return of -23.8% and a 18% success rate. Bernardino has a -64.4% average return when recommending GALE, and is ranked #4142 out of 4239 analysts.
Out of the 7 analysts polled by TipRanks, 4 rate Galena Biopharma stock a Buy, while 3 rate the stock a Hold. With a downside potential of 15.5%, the stock’s consensus target price stands at $2.40.
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