Antibe Therapeutics Inc(Pre-Merger) ATBPF

Canaccord Drops Price Target To $0.70 Following Asset Sale

[davgro]

It is important for ATE investors to hear all analyst opinions on the stock even if they are less than favourable.  Here are some of the points in Canaccord Genuity's recent note on ATE's 2022 YE results.  Their re-rating of the stock target price along with general market conditions may be putting a lid on any upward momentum in ATE's stock price.

• they reiterate their hold rating but lower their 12-month price target to C$0.70 from C$1.20, saying that the price target cut was due to the sale of Citagenix.

• the delayed Phase 2 bunionectomy trial for otenaproxesul that was supposed to start in the fourth quarter of 2022 is now being delayed to happen sometime during the first half of 2023 due to changes in the program.

• The company will be replacing the healthy volunteer PK/PD studies with a Phase 2 wisdom tooth extraction study, which the company believes “should provide a more informative data set of the targeted postoperative patient group at no additional cost.”

• On the sale of Citagenix, Canaccord does not have much to say other than that though this was unrelated to the biotechnology vertical of Antibe, it was generating between $9 and $10 million of revenue for the business to help fund the R&D. While the sale consists of $3.5 million in cash, distributed in four equal annual payments, the other $3 million is in earnouts.

• Lastly, Canaccord says, “Despite the encouraging data out of otenaproxesul’s PK/PD studies, we still believe it is too early to add the acute pain program to our valuation and would prefer to wait until the commercial Phase 2 trial begins.”

https://thedeepdive.ca/canaccord-drops-antibes-price-target-to-0-70-following-asset-sale/