In a report published Monday, JMP Securities analyst Michael G. King reiterated a Market Outperform rating on Navidea Biopharmaceuticals (NYSE: NAVB), but lowered the price target from $5.00 to $3.00.
In the report, JMP Securities noted, “Navidea Biopharmaceuticals reprioritizes its pipeline away from Alzheimer's and Parkinson's candidates to focus on the Lymphoseek launch; reaffirming our Market Outperform rating, but lowering our price target from $5 to $3. As detailed on the conference call, Navidea intends to wind down development of NAV4694 and NAV5001 – diagnostic detection candidates for Alzheimer's and Parkinson's diseases, respectively – in an effort to preserve cash and avert shareholder dilution through equity financing. Concurrent with this announcement was a change in leadership, with Dr. Michael Goldberg now serving as interim CEO (replacing Dr. Mark Pykett).
"In our view, the anticipated benefit to cash flow from these changes, while important near term, fall short of off-setting the value attributed to the developing pipeline on an NPV basis. As such, we are decreasing our year-end price target for NAVB shares from $5 to $3, based on DCF ($3.69) and SOTP ($3.05) valuation methodologies.”
Navidea Biopharmaceuticals closed on Friday at $1.39.
- Navidea Announces Restructuring of Pipeline Development; Michael Goldberg Appointed Interim CEO
- Navidea Announces Presentation of Study Findings of Manocept Platform Imaging Agent in Kaposi Sarcoma at AACR Annual Meeting
- UPDATE: JMP Securities Reiterates On Ares Commercial Real Estate On Near-Term Earnings Drag
© 2014 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
- Investment & Company Information