XBI - Corcept cut to Hold at Truist on balanced risk-reward setup
- Citing a more balanced risk-reward profile following the recent outperformance of company shares, Truist downgraded commercial-stage pharma Corcept Therapeutics ( NASDAQ: CORT ) to Hold from Buy on Monday.
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The analyst Gregory Fraser highlights Corcept ( CORT ) shares registered over 45% gain this year compared to the ~13% decline in the S&P 500 and ~28% selloff in the S&P SPDR Biotech ETF ( XBI ).
- The analyst attributes the upsurge mainly to the growth potential of the company’s Cushing’s franchise and the longer-term prospects of its pipeline.
- Given the modest upside indicated in its $30 per share target, Fraser downgrades the stock as he sees a more balanced risk-reward set up for the stock.
- Truist’s view on Corcept ( CORT ) contrasts with that of Jefferies, which launched its coverage on the stock last week with a Buy recommendation citing the profitability of the company's Cushing Syndrome drug Korlym.
- Wall Street has remained bullish on Corcept ( CORT ) stock, with an average rating of Buy from analysts , while Seeking Alpha's quant system, which consistently beats the market, rated CORT as a Hold.
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Corcept cut to Hold at Truist on balanced risk-reward setup