Merrimack Pharmaceuticals Downgraded to Neutral at Bank of America Corp. (MACK)

Merrimack Pharmaceuticals (NASDAQ:MACK) was downgraded by research analysts at Bank of America Corp. from a “buy” rating to a “neutral” rating in a report released on Friday, AnalystRatings.Net reports. They currently have a $6.00 target price on the stock, down from their previous target price of $13.00. Bank of America Corp.’s price target points to a potential upside of 51.90% from the company’s current price.

The analysts wrote, “We are downgrading MACK from Buy to Neutral and lowering our PO from $13 to $6 following a series of disappointing updates discussed as part of the 2Q business update. We now have eroded conviction in the company’s future pipeline data and management’s ability to effectively communicate its objectives and strategy with investors, including: (1) failed interim outcomes for lung and ovarian cancer studies for the company’s core development candidate MM-121, (2) conflicting management commentary on how they view MM-121 in lung cancer now vs. a few months ago and (3) a continuing shifting view of MM-121 development plans in breast cancer. While the failed MM-121 interim analyses were disclosed in connection with the capital raise last month, it was not well understood by the market until the 2Q report. We see the potential for substantial upside to shares if upcoming trial results for MM-398 in pancreatic or MM-121 in breast cancer exceed expectations, and would re-consider our rating following positive results and an understandable future development strategy. Key downside risks include additional trial failures and financing risk. Our PO moves from $13 to $6 on lower probability of success for MACK’s pipeline.”

A number of other firms have also recently commented on MACK. Analysts at Oppenheimer cut their price target on shares of Merrimack Pharmaceuticals from $12.00 to $10.00 in a research note to investors on Friday. They now have an “outperform” rating on the stock. Separately, analysts at Cowen and Company downgraded shares of Merrimack Pharmaceuticals from an “outperform” rating to a “market perform” rating in a research note to investors on Thursday. Finally, analysts at UBS AG initiated coverage on shares of Merrimack Pharmaceuticals in a research note to investors on Monday, July 22nd. They set a “positive” rating on the stock.

Two research analysts have rated the stock with a hold rating and five have issued a buy rating to the company. Merrimack Pharmaceuticals presently has a consensus rating of “Buy” and a consensus target price of $10.00.

Shares of Merrimack Pharmaceuticals (NASDAQ:MACK) traded down 1.77% during mid-day trading on Friday, hitting $3.88. Merrimack Pharmaceuticals has a 52 week low of $3.81 and a 52 week high of $11.11. The stock’s 50-day moving average is currently $5.52. The company’s market cap is $372.8 million.

Merrimack Pharmaceuticals (NASDAQ:MACK) last issued its quarterly earnings data on Thursday, August 8th. The company reported ($0.31) earnings per share (EPS) for the quarter, missing the consensus estimate of ($0.28) by $0.03. The company had revenue of $18.45 million for the quarter, compared to the consensus estimate of $13.68 million. During the same quarter in the previous year, the company posted ($0.22) earnings per share. Analysts expect that Merrimack Pharmaceuticals will post $-1.09 EPS for the current fiscal year.

Merrimack Pharmaceuticals, Inc is a biopharmaceutical company discovering, developing and preparing to commercialize medicines paired with companion diagnostics for the treatment of serious diseases, with an initial focus on cancer.