Stifel resumed coverage of Genocea Biosciences (NASDAQ:GHCA) with a “buy” rating and $13 price target. The stock closed at $3.83 on July 5.
“We think sentiment is overly negative on the neoantigen cancer vaccine category and that investors have underappreciated compelling immunogenicity Phase 1 data generated from Genocea’s lead program, GEN-009,” writes analyst Benjamin Burnett.
“In our view, these data are supportive of GEN-009’s ability to generate T-cell-specific immunological responses, and as a result, we think this improves their chances of eventually demonstrating clinical efficacy in patients with active disease,” he added.
Taking into account the overall bearish sentiment toward the neoantigen category, Mr. Burnett said Genocea’s encouraging immunological data and its current valuation, which is at the low range of peers, “we recommend owning the company’s shares ahead of clinical efficacy data expected in 2020. If the data are positive, we believe it could improve investor sentiment and positively re-rate the stock.”
