UPDATE: Cantor Fitzgerald Downgrades Galena Biopharma
In a research note released Tuesday, Cantor Fitzgerald downgraded Galena Biopharma (NASDAQ: GALE) from Buy to Sell and set the price target at $3.50.
Cantor analyst Mara Goldstein based the downgrade on, "Concerns of an overhang created by recent news of the use of promotional practices by a contracted investor relations firm and stock sales by insiders." Goldstein continued to stress that these factors may lead to a shareholder lawsuit, noting that an investigation was announced on February 17.
In an explanation of the stocks valuation Goldstein stated, "We have valued Galena shares on a discounted net present value calculation given that near-term earnings are unlikely, but we now think that the shares will be constrained by a valuation of near-term prospects." One such near-term prospect is Galena's recent acquisition of ABSTRAL, which Goldstein says is "off to a good start", but believes it to be unlikely that it will offset the development costs of NeuVax
At last check, Galena was up just over 2 percent at $3.82.
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