Maxim Chimes in on Kite Pharma Inc (KITE) Following Healthcare Conference in China
Maxim analyst Jason McCarthy is out today with a research note on shares of Kite Pharma Inc (NASDAQ:KITE), after holding a first China focused Healthcare Conference on March 6 and 7th in Shanghai. Subsequently, Kite announced the appointment of Dr. Richard Wang as CEO of Fosun Kite Biotechnology, a joint venture between Kite and one of China’s largest pharmaceutical companies, Fosun Pharmaceutical to develop axicabtagene ciloleucel (KTE-C19) as well as other engineered T cell therapies for treating cancer in China.
McCarthy noted, “With the BLA for axicabtagene ciloleucel expected to be completed in the coming weeks, Kite is at the doorstep of the first CAR-T approval and launch which we view as transformative for Kite and the immuneoncology space. China, which is undergoing a healthcare renaissance, is targeting the most innovative ex-China therapeutics (i.e. CAR-T) for development for Chinese patients. The opportunity in China, currently the World’s third largest pharmaceutical consumer, for Kite, (which we do not yet factor in) could be significant, in our view.”
McCarthy reiterates a Buy rating on Kite Pharma shares, with a price target of $84, which represents a potential upside of 7% from where the stock is currently trading.
According to TipRanks, which measures analysts’ and bloggers’ success rate based on how their calls perform, analyst Jason McCarthy has a yearly average return of -12.5% and a 33.7% success rate. McCarthy has a 19.1% average return when recommending KITE, and is ranked #4410 out of 4514 analysts.
Out of the 13 analysts polled in the past 3 months, 8 rate Kite Pharma stock a Buy, while 5 rate the stock a Hold. With an upside potential of nearly 3%, the stock’s consensus target price stands at $81.50.