UPDATE: Citigroup Upgrades Onconova Therapeutics on Favorable Risk-Reward

In a report published Tuesday, Citigroup analyst Jonathan Eckard upgraded the rating on

from Neutral to Buy, but lowered the price target from $30.00 to $27.00. In the report, Citigroup noted, “We are upgrading ONTX to Buy from Neutral, viewing the recent pullback in the stock as creating an attractive entry opportunity. We believe ONTX shares have suffered from 1) elevated concerns around SMID-cap Biotech names with binary events, and 2) several recent biotech IPOs with competitive programs to ONTX's rigosertib in bone marrow cancer (MDS). We have not seen any fundamental change to ONTX's programs and view near-term data announcements as potentially meaningful catalysts with an overall favorable risk/reward. We are lowering our target price to $27 (-$3) to reflect increased potential competition.” Onconova Therapeutics closed on Monday at $16.46.