Stemline Therapeutics (STML) PT Trimmed at Wedbush; Shares Remain Undervalued

Wedbush analyst David Nierengarten reiterated an Outperform rating on Stemline Therapeutics (NASDAQ: STML) but trimmed his price target to $35.00 (from $49.00) after the company reported a smaller-than-expected Q4 loss. The target cut comes as they push out their launch timeline. However, they still view the stock as undervalued.

Nierengarten commented, "We note that STML has relatively late-stage and wholly owned assets in development, with potential SL-401 launches in the 2017-2018 timeframe. We are pushing back our prior launch timeline for SL-401 as we see STML taking longer than we had previously expected to enroll patients into its late-stage clinical studies. Although our prior expectations of a late 2016 launch in BPDCN and a late 2017 launch in AML is still possible, we believe a 2017 and 2018 launch is more plausible, and would provide additional time to better characterize the targeted therapy's activity in IL-3R+ cancers. Our valuation was also affected by the recent equity financing."

For an analyst ratings summary and ratings history on Stemline Therapeutics click here. For more ratings news on Stemline Therapeutics click here.

Shares of Stemline Therapeutics closed at $16.18 yesterday.

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