MLV & Co. Reiterates a Buy Rating on Argos Therapeutics

By George MacDonald

In a report released today, Arlinda Lee from MLV & Co. reiterated a Buy rating on Argos Therapeutics (NASDAQ: ARGS), with a price target of $13. The company’s shares opened today at $8.91.

Lee commented, “Yesterday, ARGS reported 4Q14 EPS of ($0.83) and ended 2014 with cash and equivalents of $56.2M, which should be sufficient into 2H16. ARGS continues to ramp up operations as recruitment of the Ph3 ADAPT trial for AGS-003 in mRCC enters the final stages and as construction of an automated manufacturing facility for AGS-003 continues. We reiterate our BUY rating and $13/share price target. ADAPT Trial Recruiting On Track to Complete Enrollment by End of 2Q. As a reminder, AGS-003 received Fast Track designation from FDA, and the pivotal ADAPT trial for metastatic renal cell cancer (mRCC) patients with clear cell histology is being conducted under special protocol assessment (SPA). ADAPT originally planned to screen ~750 patients to reach a final enrollment of 450. Due to a high screening failure rate (~52%), ARGS currently expects to screen ~950 patients. Although this slightly shifts the timeline to later in 2Q, we think it prudent to ensure enrollment of the targeted 450 patients. While the primary reason for exclusion is a non-clear cell histology (about 25% of patients), other reasons include cardiac history, renal function, investigator decision, and death prior to screening. As of March 20, 925 patients have been screened, and approximately 350 enrolled/randomized”

Currently, the analyst consensus on Argos Therapeutics is Strong Buy and the average price target is $17, representing a 90.8% upside. In a report issued on March 26, Roth Capital also initiated coverage with a Buy rating on the stock with a $21 price target.

The company has a one year high of $10.80 and a one year low of $5.61. Currently, Argos Therapeutics has an average volume of 50.96k.

According to TipRanks.com, Lee is a 2-star analyst with an average return of 0.9% and a 40.9% success rate. Lee covers the Healthcare sector, focusing on stocks such as Actinium Pharmaceuticals, Karyopharm Therapeutics, and Sorrento Therapeutics.