SVB Leerink Picks This Well-Positioned NK Cell-Focused Stock, Sees 117% Upside

SVB Leerink initiated coverage on Nkarta Inc NKTX with an Outperform rating and a price target of $30 (117% implied upside).
The analysts believe Nkarta is well-positioned to compete given the company's deep biologic expertise in NK cells, as evidenced by extensive publication on programs and fundamental biology.
Nkarta's donor peripheral blood-derived NK cell platform is a commercially scalable platform with validated component technologies, SVB writes.
Related: Investors Cheer Nkarta's First NK Cell Data With Multiple Complete Responses.
The analysts see an opportunity for NKX019 in B-cell lymphoma, even with auto-CAR-T going earlier-line and T-cell engagers (TCEs) emerging as a competitive off-the-shelf therapy, citing CAR-NK offers unique advantages over other modalities.
SVB writes that competitive risk for the company's lead NKX019 and NKX101 programs are also plentiful, particularly for NKX019, given the breadth and strength of CD19 or CD20-targeted cell therapies (autologous or allogeneic) and T-cell engagers (TCEs).
Price Action: NKTX shares are down 2.75% at $13.80 during the market session on the last check Monday.

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