Atara Biotherapeutics (ATRA) PT Lowered to $20 at Stifel on Negative tab-cel Feedback from FDA, but Overall Data Seen as Supportive of Approval

Stifel analyst Benjamin Burnett lowered the price target on Atara Biotherapeutics (NASDAQ: ATRA) to $20.00 (from $25.00) while maintaining a Buy rating, following the company's latest quarterly update.

The analyst quotes: "We remain Buy-rated on ATRA shares following the company's 4Q21 update, though after the most recent negative FDA interactions regarding tab-cel, we're lowering our probability-of-success to 50%, and removing IA-LPD from our model until we receive more clarity here. However, we expect near-term price action to be more closely levered to expectations on ATA188 (multiple sclerosis). On tab-cel, we don't have a good grasp for why ATRA hasn't reached alignment with the FDA on the comparability between lots, and there appears to be a major disconnect between ATRA mgmt and the agency in terms of the interpretation of comparability data. But that negative view is balanced by our belief that the clinical data disclosed thus far is supportive of approval, and given that ATRA is now generating clinical data with commercial tab-cel, it's possible that this could satisfy the FDA comparability concerns. Our target price lowers to $20/share."

By Vlad Schepkov | [email protected]

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