Citi analyst David Lebowitz downgraded the rating on Pliant Therapeutics (PLRX – Research Report) to a Hold yesterday, setting a price target of $4.00.
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David Lebowitz has given his Hold rating due to a combination of factors surrounding the recent developments in Pliant Therapeutics’ clinical trials. The company has voluntarily paused enrollment and dosing for their BEACON-IPF Phase 2b/3 study of bexotegrast after recommendations from the independent Data Safety Monitoring Board (DSMB). This decision has introduced significant uncertainty, as the DSMB’s rationale remains unclear and may impact the trial’s timeline and Pliant’s valuation.
Given the lack of clarity, there is a considerable overhang on the company’s shares, with potential risks affecting investor confidence. While no specific safety or efficacy issues have been communicated, the pause suggests underlying concerns that need resolution. Consequently, Lebowitz has downgraded the stock to Neutral/High Risk, reflecting the heightened uncertainty and the need for further information to assess the situation accurately.
In another report released yesterday, Wells Fargo also downgraded the stock to a Hold with a $4.00 price target.