What happened
Actions of Inovio Pharmaceuticals (NASDAQ: INO) It declined Friday after investment bank Stifel lowered its rating on biotech stocks.
And that
Stifel analyst Stephen Willey downgraded his buy-to-hold Inovio stock. Willey believes that after the stock’s incredible gains in 2020 (the stock is up a staggering 797% so far this year), the risk-to-reward equation for investors is now “less acceptable.”
Bears and bulls are fighting for Inovio’s actions. Image source: Getty Images.
Although Willey raised his target price for Inovio shares from $ 19 to $ 24, his new price forecast represents a possible 20% downside based on Inovio’s closing price of $ 29.98 on Friday.
“While acknowledgment of the peer COVID-19 vaccine companies’ evaluations would suggest that we are potentially leaving a significant advantage on the table, if promising immunogenicity data (ie, a robust antibody neutralization response) materialized and a Great control written by the government, we also believe that any potential downside risk in the absence of the aforementioned events is equally significant, “Willey said.
Now what
However, not all analysts are pessimistic about Inovio’s actions. The same day Willey downgraded his hold rating, Cantor Fitzgerald analyst Charles Duncan reiterated his “overweight” rating on Inovio stock and raised his price target from $ 17 to $ 45. After studying the clinical programs of company and meeting with management, Duncan came out with a more optimistic view of Inovio’s vaccine development potential.
As is often the case with early-stage biotech companies, analysts may have very different views. Ultimately, investors will have to decide for themselves whether they are bullish or bearish on Inovio’s future prospects.
