In a report released yesterday, Justin Zelin from BTIG reiterated a Buy rating on ProKidney (PROK – Research Report), with a price target of $6.00.
Justin Zelin has given his Buy rating due to a combination of factors concerning ProKidney’s strategic clinical updates and financial outlook. Zelin acknowledges the significance of ProKidney’s forthcoming interim results from a critical Phase 2 study and the anticipated data from another study in the first half of 2024. Additionally, he views the company’s decision to modify enrollment criteria for their Phase 3 PROACT 1 study to focus on more advanced stages of chronic kidney disease (CKD) as a positive move. This change, he believes, will likely show a greater therapeutic effect, address a higher unmet medical need, and enhance the drug’s value proposition, potentially leading to better pharmacoeconomics and payor reimbursement.
Zelin also notes the overreaction of the market to competitive pressures, viewing the sell-off following news from a Novo Nordisk study as excessive. He suggests that the market has not fully appreciated the potential of ProKidney’s therapy and its distinct clinical pathway. Furthermore, he highlights ProKidney’s ongoing efforts to optimize its manufacturing processes in line with global standards in preparation for future commercial production. Zelin’s financial valuation of ProKidney incorporates a discounted cash flow (DCF) analysis with a 14% discount rate and a 2% terminal growth rate, supporting his Buy rating and a price target of $6.
PROK’s price has also changed dramatically for the past six months – from $4.830 to $1.400, which is a -71.01% drop .
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ProKidney (PROK) Company Description:
Social Capital Suvretta Holdings Corp III is a blank check company.
