Nkarta’s Strategic Enhancements in NKX019 Program and Trial Expansion Drive Positive Buy Rating

Leerink Partners analyst Daina Graybosch maintained a Buy rating on Nkarta (NKTX – Research Report) on May 15 and set a price target of $8.00.

Daina Graybosch’s rating is based on Nkarta’s strategic decision to enhance their NKX019 program by incorporating fludarabine (Flu) into the lymphodepletion regimen. This adjustment aligns Nkarta’s approach with industry standards, as many competitors in the CAR-T and NK cell therapy space are utilizing a Cy/Flu regimen. By doing so, Nkarta aims to ensure that any competitive outcomes are not compromised by the use of a less comprehensive lymphodepletion strategy, thereby reducing clinical risk.
Additionally, Nkarta’s decision to amend their Phase 1 protocols and expand their Ntrust-1 trial to include patients with primary membranous nephropathy demonstrates a proactive approach to improving trial enrollment and broadening the potential applications of NKX019. These strategic moves, coupled with management’s confidence in the potential for improved trial enrollment, contribute to Graybosch’s positive outlook and Buy rating for Nkarta’s stock.

In another report released on May 15, H.C. Wainwright also reiterated a Buy rating on the stock with a $18.00 price target.

NKTX’s price has also changed moderately for the past six months – from $2.530 to $1.720, which is a -32.02% drop .