Market Overview

Citigroup Upgrades NantKwest, But Finds Six Reasons To Stay On Sidelines

Share:
Citigroup Upgrades NantKwest, But Finds Six Reasons To Stay On Sidelines
Related
77 Biggest Movers From Yesterday
50 Biggest Movers From Yesterday

Nantkwest Inc (NASDAQ: NK)'s enterprise value has fallen to about $120 million, limiting any potential downside, according to Citigroup. 

The Analyst

Analyst Wendy Nicholson downgraded NantKwest from Sell to Neutral and maintained a $3 price target. 

The Thesis

Apart from the fall in enterprise value, the 10-Q NantKwest filed this week showed that the company is enrolling patients in three clinical trials, bringing its number of ongoing clinical trials to six, Nicholson said in a note. (See the analyst's track record here.) 

Although Citi upped its rating, the firm still remains sidelined due to NanKwest's history of missing timelines, the analyst said.

Also, Nicholson said the NANT vaccine studies include several proprietary agents not owned by the company.

Many of the company's trials are run at a single center that has strong ties to the Nant ecosystem of entities, Nicholson said. 

Citing the 10-Q, the analyst said the company has seen increases in manufacturing costs and "sporadic decreases in manufacturing yield of both haNK and taNK cells."

NantKwest's corporate transparency is "relatively low," Nicholson said. 

The Price Action

Nantkwest shared have declined about 27 percent year-to-date. The stock was trading down 2.45 percent to $3.19 at the time of publication Friday. 

Related Links:

Attention Biotech Investors: Mark Your Calendar For These August PDUFA Dates

The Week Ahead In Biotech: Conferences, PDUFA Dates And IPOs

Latest Ratings for NK

DateFirmActionFromTo
May 2017CitigroupDowngradesNeutralSell
Jan 2017JefferiesDowngradesBuyHold
Jun 2016Raymond JamesInitiates Coverage onMarket Perform

View More Analyst Ratings for NK
View the Latest Analyst Ratings

Posted-In: Citigroup Wendy NicholsonAnalyst Color Upgrades Price Target Analyst Ratings Best of Benzinga

 

Related Articles (NK)

View Comments and Join the Discussion!

Overstock Rallies After Q2 Print, tZero Investment

Mid-Afternoon Market Update: Dow Down Over 250 Points; Medley Management Shares Spike Higher