Arrowhead Research (ARWR) Buy Rating Reiterated at RBC

RBC Capital reiterated an Outperform rating on Arrowhead Research (NASDAQ: ARWR) with a price target of $35. Analyst Machael Yee said the stock remains his top small cap idea, and he expects it to grind higher into AASLD. He also said some investors see it as an attractive partner candidate.

"In our investor discussions, more fundamental longer-term investors are starting to appreciate the opportunity and view Phase IIa initial data as "out of the way" and the stock more "ownable" versus before where Street expectations were a bit all over the place making it tricky to own in front of data," said Yee. "Indeed, in our note 8/12/14 we explain how the approximate 0.7 log reduction in S-antigen and importantly, as much as 2-month long duration of "knockdown" appears fundamentally very solid and shows the drug is working, hitting its target, and of course, appears safe."

"Lastly, some investors continue to think that ARWR remains a very attractive partnership candidate after watching Roche buy ITMN for $8B, ABBV pay $275M upfront to INFI, and MRK pay $4B for IDIX, all in the last few months," he said.

For an analyst ratings summary and ratings history on Arrowhead Research click here. For more ratings news on Arrowhead Research click here.

Shares of Arrowhead Research closed at $16.27 yesterday.

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