Karyopharm Therapeutics (KPTI -8.00%) outpaced many of its fellow biotech stocks on Wednesday with an almost 11% gain. This occurred after the publication of a new research note from a prominent investment bank, which found some fresh and bullish things to say about the company.
JPMorgan Chase analyst Eric Joseph was the responsible party. He upgraded his recommendation on Karyopharm stock to neutral from the previous underweight (sell). His price target is $8 per share, which isn't too far down from its current level of just over $9.
Joseph believes that Xpovio, a treatment approved for multiple myeloma (the company's only commercialized drug), will improve its fundamentals in the coming months. However, the prognosticator still has concerns about the future.
He wrote, "With Xpovio sales counting to grow albeit at a modest pace, we see a stabilizing sentiment for Karyopharm's commercial outlook in the near to mid-term."
Joseph added, "We remain cautious on Xpovio's growth potential in the earlier-line myeloma setting with lingering concerns over the real-world tolerability and therapy duration limitations." The analyst said he is also concerned with Xpovio's ability to treat endometrial cancer; a recently published study indicated rather lackluster results for this indication.
Joseph's note also comes on the heels of Karyopharm's latest quarterly results. The biotech trounced analyst expectations, booking a surprise fourth-quarter net profit of almost $39 million against the previous year's more than $43 million deficit. Revenue, meanwhile, more than quadrupled to $126 million. Both results trounced the average prognosticator estimates for a loss of $0.49 per share and $50.5 million in revenue.