Rigel Pharma begun at neutral at Piper Sandler on value creation potential
Apr. 03, 2023 3:46 PM ETRigel Pharmaceuticals, Inc. (RIGL)By: Jonathan Block, SA News Editor3 Comments
ozgurdonmaz
- Piper Sandler has initiated Rigel Pharmaceuticals with a hold rating saying that while a recent downsizing and in-licensing of a leukemia drug are positives, more visibility is needed on the road to profitability.
- The firm has a $2 price target (~52% upside based on Friday's close).
- Analyst Allison Bratzel wrote that the in-licensing of Rezlidhia (olutasitenib) for acute myeloid leukemia is an effective leverage of its sales force, and momentum for Tavalisse (fostamatinib) for immune thrombocytopenia is improving.
- She said while the two drugs do allow for value creation along with potential in some pipeline assets, Rigel (NASDAQ:RIGL) has limited balance sheet flexibility.
- Bratzel added that she will wait to get more into Rigel (RIGL) if it can provide some indications it is on a path to profitability.
- Read why Seeking Alpha contributor Stephen Ayers argues that Rigel (RIGL) is a buy.