Shares of Nkarta ( NKTX 3.22% ) had risen by 11.1% as of 11:07 a.m. ET on Wednesday. The significant increase occurred following Raymond James The stock rating was raised from outperform to strong buy, with the 12-month price target remaining at $16.
The analyst’s upgrade occurred following Nkarta’s release of its second-quarter report on Tuesday. The biopharmaceutical company in the clinical stage plans to start enrolling patients in a clinical trial called Ntrust-2 by the end of the year. This trial will assess the effectiveness of the experimental NKX019 therapy using natural killer (NK) cells in treating autoimmune diseases such as sclerosis, myositis, and vasculitis.
The company mentioned that its cash reserves of $426.7 million as of the end of the second quarter are sufficient to support its operations until late 2027.
What makes Raymond James more optimistic about Nkarta?
Laura Prendergast, an analyst at Raymond James, is positive about Nkarta’s robust cash reserves. She highlighted that the biotech company has a significant amount of funds available. market cap Less than the amount of cash it has available.
Prendergast is also enthusiastic about the potential for NKX019. She is of the opinion that Nkarta’s NK cell therapy may offer a safer and more convenient administration compared to T-cell therapies.
Should I invest in Nkarta stock?
Investing in clinical-stage biotech stocks, including Nkarta, can be risky. It may not be suitable for cautious investors, but those who are willing to take on more risk and wait for the potential of NKX019 to be realized may find it appealing.
