As previously reported, Wedbush analyst Robert Driscoll upgraded Arbutus Biopharma to Neutral from Underperform, with a $5 price target. The analyst cited valuation, as the share price has been cut nearly in half following a company update last week. Although promising next generation capsid inhibitor AB-506 is progressing into patients as planned, the analyst was disappointed with initial results from the ongoing Phase 2 combination study of ARB-1467, and a delay in AB-452 Phase 1 initiation due to emerging nonclinical safety findings. Driscoll will look to get more constructive should second generation RNAi agent AB-729 progress into the clinic as planned in Q2 of 2019, which could allow for a differentiated combination study with AB-506 as early as 2H19.