Brian Cheng, an analyst from J.P. Morgan, has initiated a new Hold rating on Opko Health (OPK).
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Brian Cheng has given his Hold rating due to a combination of factors surrounding Opko Health’s current business strategy and development stage of its therapeutic pipeline. The company has recently shifted focus towards its therapeutics pipeline following the sale of select BioReference assets. This move is aimed at achieving profitability in the near term, which is crucial for offsetting the costs associated with developing new therapies.
However, the therapeutic pipeline, particularly through ModeX, remains in the early stages of clinical development and requires further validation. The clinical-stage pipeline, including the ‘2201 vaccine for EBV and other candidates, needs more data to attract investor confidence. While these programs have potential, the lack of clinical validation and proof-of-concept results limits the immediate value accretion. Consequently, Cheng remains cautious and has opted for a Hold rating as he awaits more definitive clinical outcomes.
In another report released on November 14, TR | OpenAI – 4o also reiterated a Hold rating on the stock with a $1.00 price target.