Aravive price target lowered to $2 from $6 at Piper Sandler

Piper Sandler analyst Edward Tenthoff lowered the firm’s price target on Aravive to $2 from $6 given dilution from the recent financing, while keeping an Overweight rating on the shares. The analyst notes Aravive ended Q3 with cash of $27.9 million, and subsequently received a $6 million milestone from 3D Medicines and issued 29.3 million shares and 15.9 million pre-funded warrants raising gross proceeds of $45 million. Tenthoff estimates Aravive now has pro forma cash of $75 million, which should fund operations through the Phase III AXLerate-OC data in platinum-resistant ovarian cancer in mid-2023.