Deutsche Bank Defends Arrowhead Amid ~16% Decline, Reiterates Buy

Shares of Arrowhead Research 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.