CAPR Target Slashed By 86% – But Retail Bulls Say Setup Offers An Attractive Risk-Reward

 

• Alliance Global Partners downgraded Capricor Therapeutics to 'Neutral' from 'Buy' and cut its price target to $7 from $51, according to The Fly.

• The brokerage said the downgrade reflects a lower probability of approval, a higher discount rate, and a reduced sales outlook for Deramiocel.

• On Monday, Capricor's CEO Linda Marban told Reuters the company was 'completely shocked' by the FDA's review approach.

Capricor Therapeutics (CAPR) remained in the spotlight on Tuesday, as Wall Street continued to react to the U.S. Food and Drug Administration's briefing documents on the firm's Duchenne muscular dystrophy therapy, with Alliance Global Partners slashing its price target on the stock by 86%.

At the time of writing, CAPR stock was down 16%, after having crashed over 64% in the previous session.

Alliance Global: CAPR Faces 'Uphill Battle' in Adcom

On Tuesday, Alliance Global Partners downgraded Capricor Therapeutics to 'Neutral' from 'Buy' and cut its price target to $7 from $51, according to The Fly. The firm said that the upcoming FDA advisory committee meeting for Deramiocel now appears to be an "uphill battle" for Capricor.

The brokerage said the downgrade reflects a lower probability of approval, a higher discount rate, and a reduced sales outlook for Deramiocel.

https://finance.yahoo.com/markets/stocks/articles/analyst-slashed-capr-stock-target-160759383.html