Wedbush cuts PT on Axcella Therapeutics, remains bullish on pipeline potential

Axcella Health

14/10/2022 13:41

** Wedbush cuts PT of drug developer Axcella Therapeutics
 AXLA.O  to $6 from $9, citing need for more financing and as a
result of share dilution from company's recently announced
direct offering
    ** However, brokerage reiterates "outperform" rating, saying
company's $34.2 mln share offering which closed on Thursday
could boost cash flow into Q2 2023
    ** Brokerage also sees the share offering as a sign of
investor confidence in co's long COVID treatment program as well
as its mid-stage trial testing a therapy for fatty liver disease
NASH
    ** Even then, brokerage believes more financing is needed to
cover readouts of data on the two drugs
    ** All seven brokerages covering the stock rate it "buy" or
higher; their median PT is $8
    ** Up to Thursday's close, stock had fallen ~22% compared
with a ~32% decline in the Nasdaq composite index  .IXIC 
 (Reporting by Johann M Cherian in Bengaluru)
 ((johann.mcherian@thomsonreuters.com;))