Jefferies Thinks Karyopharm Therapeutics’ Stock is Going to Recover

By Jason Carr

Jefferies analyst Brian Abrahams reiterated a Buy rating on Karyopharm Therapeutics (NASDAQ: KPTI) yesterday and set a price target of $12. The company’s shares closed yesterday at $6.92, close to its 52-week low of $4.83.

Abrahams noted:

“All remains on track for lead drug selinexor in MM and other hematological malignancies, as well as in solid tumors. We continue to expect maturing data, including in multiple ASH presentations and posters, will highlight selinexor’s viability across a range of cancers and multiple shots on goal, something we believe is underappreciated in KPTI’s current valuation. Financials: Total opex for 3Q was $25.8M, consisting of $19.9M of R&D vs. our $22.8M est and $5.9M G&A expense vs. our $5.7M est.”

According to TipRanks.com, Abrahams is a 1-star analyst with an average return of -2.5% and a 41.1% success rate. Abrahams covers the Healthcare sector, focusing on stocks such as DBV Technologies S.A. – American, Achillion Pharmaceuticals, and Protalix Biotherapeutics.

Karyopharm Therapeutics has an analyst consensus of Strong Buy, with a price target consensus of $18.

Based on Karyopharm Therapeutics’ latest earnings report from June 30, the company posted quarterly revenue of $59K and quarterly net profit of -$30.16M. In comparison, last year the company earned revenue of $75K and had a net profit of -$30.37M.

Based on the recent corporate insider activity of 12 insiders, corporate insider sentiment is neutral on the stock. Most recently, in June 2016, Chione Ltd, a Major Shareholder at KPTI sold 18,824 shares for a total of $150,968.

Karyopharm Therapeutics, Inc. is a clinical-stage pharmaceutical company. It is focused on the discovery and development of novel first-in-class drugs directed against nuclear transport targets for the treatment of cancer and other major diseases. Its selective inhibitors of nuclear export compounds function by preventing the export of tumor suppressor proteins from the nucleus of a cell. Karyopharm Therapeutics was founded by Joseph Araujo, Ronald A. DePinho, Pamela A Silver, Giulio Draetta, Michael G. Kauffman and Sharon Shacham on December 22, 2008 and is headquartered in Newton, MA.