Citi calls Reata a ‘must-own name’ with ‘substantial upside’

Citi analyst Yigal Nochomovitz says he has”high conviction” that Reata Pharmaceuticals’ lead drug bardoxolone “will go the distance” in multiple Phase 3 trials and provide to nephrologists globally a “long-awaited novel therapy that will change the way multiple forms of kidney disease are managed today.” Reata is a “must-own name” with “substantial upside” in the stock, despite the 60% year-to-date rally, Nochomovitz tells investors in a research note, a 54-page “deep dive report.” The analyst notes that his $185 price target takes the most conservative view of published prevalence estimates across kidney disorders Reata is pursuing. Bardoxolone has the profile and end-market structure to become a multi-billion dollar product, according to Nochomovitz.
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