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On Friday, Canaccord Genuity adjusted its price target on Atara Biotherapeutics shares, reducing it to $17 from the previous $21, while maintaining a Buy rating.
The revision follows concerns related to the delayed approval of Atara's Ebvallo and the possibility that the company may discontinue its CAR-T development in the first quarter of 2025.
The analysts from Canaccord Genuity expressed confidence that the manufacturing issues surrounding Ebvallo would be resolved. However, they also acknowledged the intricate nature of cell therapy manufacturing and the uncertainties associated with FDA regulatory processes.
At the close of 2024, Atara Biotherapeutics reported having $43 million in cash, cash equivalents, and short-term investments. In a move to bolster its financial position, the company has recently secured a $15 million equity line of credit from Redmile.
The analysts explained the reduced price target by pointing out it was "due to delayed Ebvallo approval and the potential to halt CAR-T development 1Q25."
Explaining the reiterated Buy rating they said "we anticipate manufacturing for Ebvallo should be resolved, but note the complexity of cell therapy manufacturing, and FDA regulatory uncertainly."
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