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Wolfe Research has adjusted its stance on Moonlake Immunotherapeutics (NASDAQ: MLTX), shifting the rating from Outperform to Peer Perform as the firm cited a lack of immediate catalysts as a reason for the downgrade, alongside a slowdown in Hidradenitis Suppurativa (HS) volume, which was inferred from trends seen with Novartis (SIX:NOVN).
The analysis suggests that Moonlake Immunotherapeutics may not see significant movement in the near future and is likely to follow the broader trends of the biotech sector, as represented by the XBI index.
Wolfe Research anticipates that MLTX shares could trade between $40 and $55 in the next two to three quarters, barring any major uptrends in the biotech industry.
The firm also noted that while there could be a change in perspective if Moonlake Immunotherapeutics becomes involved in merger and acquisition (M&A) activity within the next 12 to 18 months, it currently does not align with the typical profile of a pharma M&A target.
Wolfe Research suggests that a more opportune moment to reassess Moonlake Immunotherapeutics' stock could be around the first or second quarter of 2025, contingent upon the company meeting its enrollment targets.
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