Fate Therapeutics (FATE) PT Lowered to $116 at Stifel

Stifel analyst Benjamin Burnett lowered the price target on Fate Therapeutics (NASDAQ: FATE) to $116.00 (from $118.00) while maintaining a Buy rating.

The analyst commented, "We view FATE's solid tumor data for FT500 (iPS-derived NK cell) and FT516 (hnCD16) as not very strong, though we think many investors were already looking to the more sophisticated FT538 asset as offering a greater chance at success. With the stock trading near year-to-date lows, we don't think expectations for clear efficacy were high into these data; moreover, FT596 data at ASH may be creating a near-term overhang. We believe the bull case for FT538 is that the CD38 knockout supports more durable serial killing, at least preclinically, and secondly, the clinical program better leverages the hnCD16 edit with 4 separate antibody combination regimens being assessed. We're removing both FT500 and FT516 opportunities from our model, but adding in FT538 and FT536 (MICA/B CAR-NK), though we heavily risk-adjust this based on the historical challenge of developing cell therapy for solid tumors. Target price to $116/share."

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