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Investing.com - BofA Securities downgraded ProKidney Corp. (NASDAQ:PROK) from Neutral to Underperform on Monday, while significantly reducing its price target from $3.00 to $1.00 per share. According to InvestingPro data, the company’s stock has already declined over 70% in the past year, with a current market capitalization of approximately $196 million.
The downgrade reflects BofA’s more conservative peak sales outlook for REACT, ProKidney’s sole product candidate being developed for the treatment of diabetic chronic kidney disease. The revised outlook follows recent discussions with nephrology experts that suggested changes in the competitive landscape.
BofA now projects peak sales of $900 million for REACT, down from its previous estimate of $1.8 billion, citing the need for more segmentation-related adjustments that reduce the total addressable market. The firm maintains its view that REACT remains a high-risk program with a 40% probability of success.
The investment bank expressed caution about ProKidney’s ability to materially advance the timeline for Phase 3 data, which is currently expected in the third quarter of 2027. BofA’s revised price target is based on a discounted cash flow analysis reflecting the reduced sales forecast.
BofA stated that the risk/reward profile for ProKidney now skews to the downside, citing a financing overhang and limited value-inflection catalysts in the near term. Despite these concerns, InvestingPro data indicates the company maintains a strong liquidity position with a current ratio of 11, and its next earnings report is scheduled for August 7, 2025. Get more detailed insights and 13 additional ProTips with InvestingPro.
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