In a report released yesterday, Alec Stranahan from Bank of America Securities reiterated a Sell rating on TG Therapeutics (TGTX – Research Report), with a price target of $10.00.
Alec Stranahan has given his Sell rating due to a combination of factors affecting TG Therapeutics. Despite the recent positive performance of Briumvi’s launch, Stranahan anticipates significant competitive challenges in the future, particularly from subcutaneous options like Kesimpta and Ocrevus, which are expected to gain traction due to their convenience. While Briumvi’s sales have met expectations, the analyst foresees potential volatility in the stock due to the market’s perception of these competitive dynamics.
Furthermore, Stranahan views the current valuation of TG Therapeutics as overestimating the long-term market potential of Briumvi. Although there are upcoming initiatives, such as a pivotal subcutaneous program for Briumvi and trials in autoimmune diseases, these are still in early stages and may not significantly impact the company’s valuation in the near term. As a result, the analyst maintains a cautious outlook with a price objective significantly lower than the current trading price.
Based on the recent corporate insider activity of 14 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 TGTX in relation to earlier this year.
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