Cantor starts Portage Biotech at OW; PT $35

Cantor Fitzgerald launched coverage of Portage Biotech (NASDAQ:PRTG) with an “overweight” rating and $35 price target. The stock closed at $18.95 on Aug. 18. 

Portage Biotech is a clinical biopharmaceutical company focused on developing a diversified pipeline of immuno-oncology therapies for targeting cancer treatment resistance. The lead two programs are focused on invariant natural killer T-cell (iNKT) agonists for the treatment of solid tumors. 

“We believe iNKT cell-based immunotherapy is largely under the radar and overlooked by investors,” writes analyst Li Watsek. “However, recent clinical data from iNKT cell therapy and pharma deals in the space lend support for this approach, which we think deserve more investor attention.” 

Over the next 12-to-18 months, Ms. Watsek expects to get Phase 1/2 safety data from both programs by yearend and efficacy/proof-of-concept data in melanoma, non-small cell lung cancer and other solid tumors in 2022, “which should provide significant valuation inflection points.” 

At the current market capitalization of $230-million, “we think the pipeline is undervalued and the risk/reward is attractive heading into multiple catalysts,” she added.