Deutsche Bank Downgrades Targacept (TRGT) to Hold, Cuts Price Target by 62.5%
Tweet
Share
E-mailGet Alerts TRGT Hot Sheet
Price: $0.96 --0%
Rating Summary:
0 Buy, 6 Hold, 0 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 12 | Down: 21 | New: 20
Rating Summary:
0 Buy, 6 Hold, 0 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 12 | Down: 21 | New: 20
Join SI Premium – FREE
Deutsche Bank downgraded shares of Targacept (NASDAQ: TRGT) to a Hold rating from its previous rating of Buy and slashed its price target by 62.5 percent from $32 to $12.
The firm reports the downgrade is due to a lack of near term catalysts since the failure of first ph III trial of TC-5214 in MDD. Deutsche is now assigning no value to TC-5214 and are modeling a 30 percent probability of success for TRGT's alpha-7 compound TC-5619 in CDS. Deutsche estimates peak sales of $1.35 billion for TC-5619 in CDS.
An analyst at Deutsche comments, "As the company said on the call that that the treatment arm did not separate from the placebo arm in REN-3 trial we have low confidence about the success of future studies of TC-5214. TRGT will need two of its three remaining ph 3 trials to be successful for filing and approval of TC-5214. REN-2 trial conducted in US and India will be the next trial to read out in 1H'12."
The firm is currently forecasting EPS of ($0.31) and ($0.61) for FY11 and FY12.
For an analyst ratings summary and ratings history on Targacept click here. For more ratings news on Targacept click here.
Shares of Targacept closed at $19.12 yesterday.
The firm reports the downgrade is due to a lack of near term catalysts since the failure of first ph III trial of TC-5214 in MDD. Deutsche is now assigning no value to TC-5214 and are modeling a 30 percent probability of success for TRGT's alpha-7 compound TC-5619 in CDS. Deutsche estimates peak sales of $1.35 billion for TC-5619 in CDS.
An analyst at Deutsche comments, "As the company said on the call that that the treatment arm did not separate from the placebo arm in REN-3 trial we have low confidence about the success of future studies of TC-5214. TRGT will need two of its three remaining ph 3 trials to be successful for filing and approval of TC-5214. REN-2 trial conducted in US and India will be the next trial to read out in 1H'12."
The firm is currently forecasting EPS of ($0.31) and ($0.61) for FY11 and FY12.
For an analyst ratings summary and ratings history on Targacept click here. For more ratings news on Targacept click here.
Shares of Targacept closed at $19.12 yesterday.
Serious News for Serious Traders! Try StreetInsider.com Premium Free!
You May Also Be Interested In
- Deutsche Bank Downgrades Workday (WDAY) to Hold
- Maxim Group Downgrades cbdMD Inc. (YCBD) to Hold
- CJS Securities Downgrades Varex Imaging (VREX) to Market Perform
Create E-mail Alert Related Categories
DowngradesRelated Entities
Deutsche BankSign up for StreetInsider Free!
Receive full access to all new and archived articles, unlimited portfolio tracking, e-mail alerts, custom newswires and RSS feeds - and more!
