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Is POINT Biopharma Lacking Spark?
Stock Analysis & Ideas

Is POINT Biopharma Lacking Spark?

Investing in a clinical-stage pharmaceutical company can be highly rewarding and equally risky. Which is POINT Biopharma Global (PNT): a compelling growth story, or cause for caution? 

The radiotherapeutics company focuses on developing and commercializing radiopharmaceuticals to fight cancer. POINT Biopharma recently merged its business with Research Alliance Corp. and debuted on the exchange on July 1. 

Despite having two of its products in Phase 3, POINT Biopharma stock has failed to excite investors. (See POINT Biopharma Global stock charts on TipRanks)

TipRanks’ Stock Investors tool shows that investors currently have a Very Negative stance on PNT stock, with 4.6% of investors who hold portfolios on TipRanks reducing their exposure in the last seven days.

According to Jefferies analyst Chris Howerton, POINT Biopharma’s “CMC facility/capabilities has scarcity value currently, but few barriers to entry make this value short-lived.” Howerton initiated coverage on POINT Biopharma with a Hold rating and a price target of $8 (8.4% downside potential).

While Howerton is optimistic about radiopharmaceuticals therapies, he sees limited value in POINT Biopharma’s broader pipeline. The analyst said, “We see limited value in broader pipeline, in part due to continued competition from NVS’s Lutathera and early-staged FAP targeting radiopharmaceuticals. In short, we are not that excited by the current pipeline from PNT.”

Howerton summed up by saying that PNT shares are fairly valued given the limited sales opportunity for PNT2002. Still, the analyst expects the Phase 3 trial for PNT2002 to be successful in 2023.

On TipRanks, POINT Biopharma stock has a Moderate Buy consensus rating, based on 1 Buy and 1 Hold. The average POINT Biopharma Global price target of $12.50 implies 43.2% upside potential to current levels.

Disclaimer: The opinions expressed in this article are solely those of the featured analyst. The content is intended to be used for informational purposes only. It is very important to do your own analysis before making any investment.

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