Stifel cuts COVID-19 vaccine developer Inovios price target as earnings and call leave more questions than answers – MarketWatch

Stifel analysts cut their stock price target for Inovio Pharmaceuticals Inc.
INO,
-6.08%
to $16 from $24 on Tuesday, after the company posted a wider-than-expected second-quarter loss and revenue that fell short of estimates. Inovio is one of many companies working to develop a COVID-19 vaccine candidate. The numbers and the call “left us (again) with more questions than answers on numerous fronts,” analysts led by Stephen Willey wrote in a note to clients. These include disclosure timelines for the trial of the company’s COVID-19 vaccine candidate, INO-4800. The company said it expanded a 40-patient early-stage clinical trial by another 80 participants and that most patients were showing an immunological response to the vaccine, either by achieving binding antibodies, neutralizing antibodies or T cell responses. “Our hesitancy to attribute any INO-4800-related value in our model persists and our previously reduced discount rate (9%) reflected improved perception re: the likelihood of procuring third party funding,” said the note. “We believe these lingering questions, coupled with an acceleration of the competitive development landscape (and difficult-to-beat immunogenicity hurdles), forces us to revisit that assumption (+250bps).” The company reported a second-quarter loss of $128.7 million, or 83 cents a share, compared with a loss of $29.4 million, or 30 cents a share, in the year-ago period. Revenue rose to about $267,000 from about $136,000 in the year-ago quarter. Analysts surveyed by FactSet had forecast a loss of 17 cents a share on revenue of $2.6 million. Shares were down 8% in premarket trade Tuesday, but have gained 475% in the year to date, while the S&P 500
SPX,
+0.27%
has gained 4%.