Analyst John Newman of Canaccord Genuity maintained a Buy rating on Atara Biotherapeutics (ATRA – Research Report), retaining the price target of $17.00.
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John Newman has given his Buy rating due to a combination of factors surrounding Atara Biotherapeutics’ strategic focus and financial positioning. A key element is the upcoming Type A meeting with the FDA in the second quarter of 2025, which is crucial for addressing issues related to the Complete Response Letter for EBVALLO. The fact that these issues do not pertain to clinical data suggests a potential for a smoother resubmission process, possibly as early as June 2025, assuming no additional clinical data is requested by the FDA.
Another significant factor is Atara’s successful transfer of all EBVALLO manufacturing to Pierre Fabre, which allows the company to concentrate on the Biologics License Application (BLA) resubmission. This strategic move also includes milestone payments and potential double-digit royalties upon FDA approval. Additionally, Atara’s financial strategy, including a $16 million fund and operational cost cuts, is expected to extend its cash runway to the first quarter of 2026, although further funding might be necessary post-approval. These elements collectively support the Buy rating with a price target of $17.
Based on the recent corporate insider activity of 20 insiders, corporate insider sentiment is negative on the stock. This means that over the past quarter there has been an increase of insiders selling their shares of ATRA in relation to earlier this year.