Cantor Fitzgerald Analyt Comments on NewLink Genetics (NLNK) CFO Change

Cantor Fitzgerald maintained a Buy rating on NewLink Genetics (NASDAQ: NLNK) with a price target of $34. Analyst Mara Goldstein doesn't believe the change of CFO announced yesterday signals anything is amiss.

"NewLink has appointed John "Jack" Henneman to the position of Executive Vice President and Chief Financial Officer, replacing Gordon Link. We do not believe that the change of CFO signals anything amiss at the company, but rather a desire to add a financial chief with greater commercial experience. Mr. Henneman had previously served as CFO of Integra LifeSciences, a medical device company with greater than $800 million in sales in 2013," said Goldstein.

"With much emphasis on the Ebola program, NewLink shares have reacted strongly to the company's development program, funded through a grant from the DTRA. Given the opportunity for rapid development of this candidate, the program could achieve commercialization status at an accelerated rate. Our focus, however, has been the company's oncology/immunotherapy assets, which we still believe to be the key value drivers. We have not included any upside from Ebola in our price target, nor have we made any assumptions as to the company's ability to monetize its BPS subsidiary, suggesting that upside is possible," added the analyst. "We continue to like the shares for the HyperAcute and IDO inhibitor platforms, particularly the potential for Phase III data for the HyperAcute pancreas study."

For an analyst ratings summary and ratings history on NewLink Genetics click here. For more ratings news on NewLink Genetics click here.

Shares of NewLink Genetics closed at $22.95 yesterday.

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