Guggenheim lowered the firm’s price target on Zentalis to $12 from $45 and keeps a Buy rating on the shares after the FDA placed a partial clinical hold on 3 ongoing clinical studies of azenosertib following two recent deaths in the DENALI ovarian cancer Phase I/II study. Guggenheim says this is a major setback for Zentalis and expects the stock to remain under pressure until more clarity is provided, the analyst tells investors in a research note. The firm believes clinical holds similar to this generally tend to be lifted after implementation of additional safety measures and protocol adjustments, which could offer a path to potential resolution.
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Read More on ZNTL:
- Zentalis downgraded to Hold from Buy at Jefferies
- Zentalis downgraded to Equal Weight from Overweight at Morgan Stanley
- Zentalis price target lowered to $20 from $40 at H.C. Wainwright
- Zentalis price target lowered to $10 from $32 at Stifel
- Wells ‘throwing in the towel’ on Zentalis, downgrades stock to Equal Weight