Is this U.S.-China selloff a buy? A top Wall Street voice weighs in
Investing.com - H.C. Wainwright raised its price target on Prothena Corp (NASDAQ:PRTA) to $20.00 from $14.00 on Wednesday, while maintaining a Buy rating on the stock. The new target represents nearly 100% upside from the current price of $10.17. According to InvestingPro data, the company appears undervalued based on its Fair Value analysis.
The firm cited material advancements in Prothena’s two partnered late-stage programs as the basis for the increased target. H.C. Wainwright specifically highlighted Coramitug’s Phase 3 design in ATTR cardiomyopathy and prasinezumab’s progression toward Phase 3 trials in Parkinson’s disease. With a strong current ratio of 5.68x and minimal debt-to-equity of 0.03, InvestingPro analysis shows Prothena is well-positioned to support its development programs.
Novo Nordisk disclosed the pivotal Phase 3 CLEOPATRA trial for coramitug, which will enroll nearly 1,280 patients with ATTR cardiomyopathy. The trial’s primary endpoint will measure cardiovascular death and recurrent cardiovascular events over up to four years.
Roche has confirmed plans to initiate a Phase 3 trial of prasinezumab in early Parkinson’s disease by year-end 2025, according to the research note.
H.C. Wainwright emphasized that Prothena’s partnership arrangements with Novo Nordisk and Roche allow the company to retain milestone payments and royalties while the partners carry development costs, creating "asymmetric upside" not reflected in the current valuation. The broader analyst consensus shows a moderate buy rating, with targets ranging from $4 to $20. Discover more detailed insights and 12+ additional ProTips about Prothena’s financial health and growth potential with InvestingPro’s comprehensive research report.
In other recent news, Bristol Myers Squibb announced that the U.S. Food and Drug Administration has granted Fast Track Designation to BMS-986446, a promising drug in development for early Alzheimer’s disease. This designation aims to expedite the development and review process for treatments addressing serious conditions with unmet medical needs. Meanwhile, Prothena Corporation has faced several adjustments in analyst evaluations. Citizens JMP lowered its price target for Prothena to $11, citing concerns from recent Phase 1 trial results in Alzheimer’s patients. Similarly, Piper Sandler cut its price target to $15 from $81 after disappointing data from Prothena’s PRX012 program. RBC Capital also reduced Prothena’s stock price target to $10 following the discontinuation of Prothena’s lead proprietary program, birtamimab. In a related development, Novo Nordisk announced plans to advance coramitug, initially developed by Prothena, to Phase 3 trials for ATTR amyloidosis in 2025. These developments reflect ongoing changes and challenges in the biotechnology sector.
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