Galena Biopharma (GALE) Remains 'Sell' at Cantor Fitzgerald, PT Cut to $3
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Price: $0.21 --0%
Rating Summary:
6 Buy, 4 Hold, 0 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 11 | Down: 12 | New: 9
Rating Summary:
6 Buy, 4 Hold, 0 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 11 | Down: 12 | New: 9
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Cantor Fitzgerald reiterated a Sell rating on Galena Biopharma (NASDAQ: GALE) and lowered its price target to $3.00 (from $3.50). Comments follow Q4 results. The bigger issue, however, is an SEC investigation into the 'Dream Team' relationship, said analyst Mara Goldstein.
"Our SELL rating on GALE shares was prompted by our concern that shareholder lawsuits and the potential for additional investigations would create a cloud over the valuation. With the disclosure of an SEC investigation into " matters" relating to Galena and "an outside investor-relations firm" retained in 2013, we think this issue will continue to persist, penalizing the shares. We are lowering our price target to $3.00 from $3.50," said Goldstein.
"The outcome of investor and SEC investigations may not be known for a while, but Galena is proactively bringing in personnel to navigate the various claims, and has hired an SEC-experienced adviser/consultant to defend the company against claims currently being levied. This is a good move, in our view, but we think it too early to tell if an ameliorating effect will occur. Though the company maintains insurance against such events, we think the headline risk will be hard for the shares to overcome near term," added the analyst.
For an analyst ratings summary and ratings history on Galena Biopharma click here. For more ratings news on Galena Biopharma click here.
Shares of Galena Biopharma closed at $3.22 yesterday.
"Our SELL rating on GALE shares was prompted by our concern that shareholder lawsuits and the potential for additional investigations would create a cloud over the valuation. With the disclosure of an SEC investigation into " matters" relating to Galena and "an outside investor-relations firm" retained in 2013, we think this issue will continue to persist, penalizing the shares. We are lowering our price target to $3.00 from $3.50," said Goldstein.
"The outcome of investor and SEC investigations may not be known for a while, but Galena is proactively bringing in personnel to navigate the various claims, and has hired an SEC-experienced adviser/consultant to defend the company against claims currently being levied. This is a good move, in our view, but we think it too early to tell if an ameliorating effect will occur. Though the company maintains insurance against such events, we think the headline risk will be hard for the shares to overcome near term," added the analyst.
For an analyst ratings summary and ratings history on Galena Biopharma click here. For more ratings news on Galena Biopharma click here.
Shares of Galena Biopharma closed at $3.22 yesterday.
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