Zentalis price target lowered to $10 from $32 at Stifel

Stifel analyst Bradley Canino lowered the firm’s price target on Zentalis to $10 from $32 and keeps a Buy rating on the shares after the FDA placed a partial clinical hold on several studies of azenosertib after two patient deaths occurred in DENALI in quick succession due to infection in the setting of neutropenia. With balance sheet strength for a potential turnaround, the firm says the reason to recommend shares here is “the optionality to see if these data can elucidate a biomarker population wherein azenosertib has an acceptable therapeutic index,” though it acknowledges that azenosertib’s partial clinical hold from infectious deaths likely sends shares to levels at or below cash exiting Q2, or $6 per share. In late morning trading, Zentalis shares have fallen $2.75, or 33%, to $5.64.