UPDATE: MLV & Co Reiterates Buy Rating, Lowers PT on Galena Biopharma on Positive Long-Term Outlook

In a report published Wednesday, MLV & Co analyst Vernon T. Bernardino reiterated a Buy rating on

, but lowered the price target from $5.00 to $3.00. In the report, MLV & Co noted, “We believe the negative reaction to Galena Biopharma's (GALE) disclosure of its CEO's resignation, on 8/21, is now priced into the stock. While we still await results from GALE's internal inquiry into third-party stock promotion and potential insider trading, we believe the stock, which is still down 56% YTD, is attractive for speculative investors tolerant of volatility. We acknowledge that risk exists in the form of potentially negative outcomes from the ongoing SEC investigation and ongoing class action lawsuits. However, we are focused on continued operational progress, as well as completion of the PRESENT Ph 3 study with NeuVax in breast cancer, as the primary driver of stock appreciation. We made changes in our models and maintain our Buy rating, but lower our PT to $3, from $5. As we believe GALE will be capital-constrained near term, unlike consensus, we now look for NeuVax to be partnered ($12MM upfront in 2015).” Galena Biopharma closed on Tuesday at $2.34.