UPDATE: Bank of America Upgrades MacroGenics on Broad Immunotherapy Pipeline
In a report published Tuesday, Bank of America analyst Steve Byrne upgraded the rating on MacroGenics (NASDAQ: MGNX) from Neutral to Buy, and raised the price target from $30.00 to $50.00.
In the report, Bank of America noted, “We are raising our rating to Buy (from Neutral) and our PO to $50 (from $30) based on higher sales expectations for the company's oncology pipeline. We are raising the probability of approval for MGNX' lead asset margetuximab to 35% (from 25%), raising the NPV to $27 (from $21). Previous phase 1 data highlighted meaningful responses in refractory breast and gastric cancer, and MGNX has now enrolled two higher dose cohorts.
"Marge differs from other HER2 antibodies (e.g. Herceptin) by enhanced binding to macrophages (which help kill cancer cells), similar to Roche's recently approved Gazyva. A study in third line gastric cancer is being conducted at sites to follow Kadcyla failures, potentially selecting patients that differentiate marge from competitors. While there are several anti-HER2 therapies, we believe the enhanced functionality of marge could broaden addressable patients.”
MacroGenics closed on Friday at $33.92.
Latest Ratings for MGNX
|Dec 2016||SunTrust Robinson Humphrey||Initiates Coverage On||Buy|
|Sep 2016||Cowen & Co.||Initiates Coverage on||Outperform|
© 2017 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.