Leerink Swann Downgrades Targacept (TRGT) to Market Perform; 2nd Failed TC5214 Depression Study
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Price: $0.96 --0%
Rating Summary:
0 Buy, 6 Hold, 0 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 10 | Down: 18 | New: 20
Rating Summary:
0 Buy, 6 Hold, 0 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 10 | Down: 18 | New: 20
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Leerink Swann downgraded Targacept (NASDAQ: TRGT) from Outperform to Market Perform, price target lowered from $12 to $6-$7 range.
Leerink analyst said, "This morning, TRGT/AZN announced the second failed Phase III study of TC5214. With two more trials remaining that both need to be positive to support approval prospects, we believe the probability of success is too low to still see a compelling risk/reward. TRGT will finish the year with approximately $7/share in cash/equivalents and should have cash through the end of 2014. While the company has a number of pipeline products targeting neuronal nicotinic receptors, we believe the difficulty identifying an appropriate therapeutic application means that investors will ascribe little probability of success, and the shares could trade below cash as a result. Our valuation falls to $6-7/share (from ~$12/share)."
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 $7.78 yesterday.
Leerink analyst said, "This morning, TRGT/AZN announced the second failed Phase III study of TC5214. With two more trials remaining that both need to be positive to support approval prospects, we believe the probability of success is too low to still see a compelling risk/reward. TRGT will finish the year with approximately $7/share in cash/equivalents and should have cash through the end of 2014. While the company has a number of pipeline products targeting neuronal nicotinic receptors, we believe the difficulty identifying an appropriate therapeutic application means that investors will ascribe little probability of success, and the shares could trade below cash as a result. Our valuation falls to $6-7/share (from ~$12/share)."
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 $7.78 yesterday.
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