2023-08-08 16:54:17 ET
Jefferies has downgraded Enanta ( NASDAQ: ENTA ) to hold, citing concerns that the company won't be able to find a commercial partner for its COVID-19 treatment EDP-235.
The investment bank said it was wary of Enanta's plan not to move EDP-235 into Phase 3 testing until it finds a commercial partner for the product.
"We're skeptical if ENTA can find a partner for EDP-235," wrote the analysts in their note, adding that the rest of the company's pipeline is "too early" or has a "low" percentage of success.
Jefferies advised investors to "stay on the sidelines until we see real signs of progress." The bank set a price target of $18 for the stock.
Enanta released its quarterly earnings report on Monday.
More on Enanta:
Enanta Pharmaceuticals, Inc. ( ENTA ) Q3 2023 Earnings Call Transcript
Enanta Pharma GAAP EPS of -$1.86 beats by $0.47, revenue of $18.89M beats by $2.15M
Enanta: Deep Dive Reveals No Changes To Growth Headwinds
Drug pricing watchdog raises alarm over upcoming liver disease meds
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Jefferies cuts Enanta to hold, cites concerns about COVID-19 drug