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UPDATE: Cantor Fitzgerald Downgrades Galena Biopharma

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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.

Latest Ratings for GALE

Mar 2014McNicoll Lewis VlakMaintainsBuy
Feb 2014Cantor FitzgeraldDowngradesBuySell
Nov 2013OppenheimerInitiates Coverage onOutperform

View More Analyst Ratings for GALE
View the Latest Analyst Ratings

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


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