Deutsche Bank Defends Arrowhead Amid ~16% Decline, Reiterates Buy
Shares of Arrowhead Research (NASDAQ: ARWR) were clobbered Monday as investors were disappointed with details of the company's dosing commencement in the Phase 2a trial of ARC-520. Shares plunged more than 16 percent to close at $17.37.
Deutsche Bank analyst Alethia Young had some reassuring comments for Arrowhead investors in a mid-day research note.
She attributed the downside in Arrowhead to "weakness in overall biotech sentiment" and suggested the company "remains the leader on timelines." She sees Arrowhead as "about a year ahead" for the company's HBV study.
Young set a fair value estimate for Arrowhead shares within $35 to $45 amid the Phase 2a data.
The Deutsche Bank analyst reiterated a Buy rating and $45 price target on shares of Arrowhead Research.
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