ALLK - Allakos price target cut to $20 from $230 at H.C. Wainwright

Allakos (NASDAQ:ALLK) down 3% premarket after H.C. Wainwright analyst Patrick Trucchio lowered the firm's price target (PT) on the stock to $20 from $230; keeps Buy rating. Last week, the company announced disappointing top-line data from late-stage studies of lirentelimab in patients with biopsy-confirmed eosinophilic gastritis and/or eosinophilic duodenitis, and eosinophilic esophagitis. The analyst anticipates management to pivot the program to other indications such as atopic dermatitis, chronic spontaneous urticaria and asthma. He believes a path forward for lirentelimab could be found in these other indications. PT of $20 still implies a premium of 97% to the last close of $10.15. Quant rating on the stock is Very Bearish, whereas Wall Street sell-siders are Neutral with average PT of $48. Following trial setback, Allakos drew multiple analyst downgrades.

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Allakos price target cut to $20 from $230 at H.C. Wainwright