Market Overview

UPDATE: Cantor Fitzgerald Downgrades Galena Biopharma

Related GALE
Markets Open Higher; McDonald's Profit Misses Estimates
Galena Biopharma Enters Into Definitive Agreement To License U.S. Rights for Zuplenz Oral Soluble Film - Will Pay $5M In Cash & Stock

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.

Posted-In: Cantor Fitzgerald Marc GoldsteinAnalyst Color Downgrades Price Target Analyst Ratings

 

Most Popular

Related Articles (GALE)

Around the Web, We're Loving...

Partner Network

Get Benzinga's Newsletters