Banc of America downgraded Intermune (ITMN) to neutral from buy.
Analyst Michael King says shares reached his $24 target, which he feels represents fair value. He doesn't foresee any near-term catalysts to drive shares higher. He says while he believes new management has cut spending, the company could still be sold, and he sees limited upside at the current valuation.
King says while sales for lead product Actimmune are still growing, controversy remains about the drug in the clinical community. He says he would become more positive on a lower stock price or accelerating Actimmune sales growth. He'll keep his eye on prescription trends for Actimmune.