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Goldman Sachs downgraded
MannKind Corporation MNKD to a Sell from Neutral, noting that the risk/reward ratio from selling the stock here is 55 percent to the downside versus just 5 percent to the upside. The analysts placed a price target of $3 on the shares, which closed yesterday at $6.64. The stock is trading 10 percent lower – to $6.02 – at the open.
Goldman said that the biotech company's diabetes product's launch will be slower-than-expected with the firm also experiencing "more difficult pricing." Therefore, the analysts pegged 2019-2021 EPS at a 30 percent discount to consensus estimates, leading them to the $3 price target.
Most concerning, Goldman said, was MannKind's launch of Afrezza, which has "fallen short of our expectations." The analysts halved Afrezza's sales targets to $1 billion in 2025. Simultaneously, other recent diabetes products have fallen 75 percent short of Goldman estimates, leading the firm to conclude that Afrezza's initial hiccups are not temporary.
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
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