ProKidney stock price target raised to $7 from $6 at Guggenheim

Investing.com - Guggenheim raised its price target on ProKidney Corp. (NASDAQ:PROK), now valued at $1.33 billion, to $7.00 from $6.00 on Monday, while maintaining a Buy rating on the stock. The new target sits within the broader analyst range of $1.00 to $9.00.

The price target increase follows a remarkable 648% surge in ProKidney shares last week, compared to the XBI’s approximate 3.4% gain, after the company released data from its Phase 2 REGEN-007 trial for rilparencel. According to InvestingPro data, the stock’s RSI indicates overbought conditions, suggesting investors should monitor technical levels carefully.

Guggenheim increased its probability of success for rilparencel to 55% from 40% after consulting with company management and two leading nephrologists who indicated the eGFR impact observed in the trial appears clinically meaningful.

The experts suggested that if validated in Phase 3 trials, rilparencel could potentially delay the need for dialysis by several years in patients with Stage 3b/4 chronic kidney disease (CKD), while also noting the treatment’s safety profile is comparable to that of a kidney biopsy.

ProKidney is expected to provide a regulatory update next month following its Type B Meeting with the FDA, with full REGEN-007 data presentation scheduled for the American Society of Nephrology Meeting in November.

In other recent news, ProKidney Corp. reported significant topline results from its Phase 2 REGEN-007 trial evaluating rilparencel in patients with chronic kidney disease and diabetes. The trial showed a notable improvement in kidney function decline, with Group 1 patients demonstrating a 78% improvement in the annual decline of estimated glomerular filtration rate (eGFR) after treatment. Citi analysts responded to these results by raising their price target for ProKidney to $9, citing the study’s better-than-expected outcomes. They also increased the probability of success for the treatment to 60%, noting that the findings could support accelerated approval in Phase 3, pending FDA confirmation.

Conversely, BofA Securities maintained its Underperform rating on ProKidney, expressing concerns about trial risks and regulatory uncertainties. Despite the positive data, BofA pointed out the lack of a sham comparator in the study and the need for clarity on the regulatory pathway. They also noted that the timeline to Phase 3 might exceed the company’s capital runway. ProKidney plans to present the full results at the American Society of Nephrology’s 2025 Kidney Week and is preparing for an FDA Type B meeting to confirm its approach to using eGFR slope as a surrogate endpoint for accelerated approval.

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