What happened
Even though it's only Tuesday, BioXcel Therapeutics (BTAI 0.77%) is having a week to forget. After the biotech's share price tanked on Monday on the back of less-than-inspiring quarterly results and the announcement of significant job cuts, it was hammered again the following day. It lost over 4% of its value, which unfavorably compared to the 1.2% decline of the S&P 500 index.
So what
As often happens in the wake of quarterly earnings reports that are either far better or substantially worse than expected, analysts adjusted their takes on BioXcel Tuesday.
That wasn't a good development for the company. One prognosticator, Graig Suvannavejh of Mizuho Securities, went as far as to downgrade his recommendation on the stock. Suvannavejh now feels BioXcel now only rates a neutral, instead of his previous buy. More discouragingly, the pundit made a severe cut to his price target -- it's now $4 per share, down sharply from his preceding $40.
Suvannavejh's new take is based heavily on that earnings report. He's adjusted his model on the biotech company's financials on the basis of its restructuring, in addition to its "strategic reorganization." Both were announced in the report.
Now what
While other analysts didn't change their recommendations, they did get more bearish on BioXcel's potential. Prognosticators from Goldman Sachs, Truist Securities, and Canaccord Genuity all trimmed their price targets.
Goldman Sachs' Corinne Jenkins lowered hers to $4 per share from $12, while Truist's Robyn Karnauskas now feels the stock is worth $31 (from $71). Cannacord Genuity's Sumant Kulkarni's new level is $20; previously it stood at $75. All three analysts are maintaining their recommendations, though, which are neutral, buy, and buy, respectively.
