H.C. Wainwright cuts Nkarta target, says 35% selloff overdone

H.C. Wainwright analyst Emily Bodnar lowered the firm’s price target on Nkarta to $16 from $30 and keeps a Buy rating on the shares after the company presented updated NKX101 data for treatment of acute myeloid leukemia. The updated NKX101 flu/cyclophosphamide data disappoint though the new cohort points to potentially differentiated efficacy, the analyst tells investors in a research note. While more patient data are needed to fully understand the efficacy profile given the disappointing updated lymphodepletion results, the current stock reaction is overdone “given that early efficacy looks positive,” says the firm. It updated Nkarta’s model to remove myelodysplastic syndrome sales given that the company is no longer enrolling patients with MDS into NKX101 studies.