BioLineRx (BLRX) Stock: Gaining Big On Coverage


BioLineRx Ltd (NASDAQ: BLRX)

BioLineRx is having an incredibly strong day in today’s trading session. When the session opened, the stock was already trading slightly in the green. From there, we saw a slow and steady continuation of gains, ultimately bringing the stock value to impressive daily highs. Below, we’ll talk about what we’re seeing from the stock, why, and what we’ll be watching for with regard to BLRX ahead.

What We’re Seeing From BLRX

As mentioned above, BioLineRx has been having a strong day in the market all day today. When the opening bell rang, the stock was already trading slightly in the green. Throughout the day, the stock continued to push higher and higher, making an impressive run for the top. At the moment (12:17), BLRX is trading at $1.17 per share after a gain of $0.08 per share or 7.72% thus far today.

Why The Stock Is Climbing

As is just about always the case, our partners at Trade Ideas were the first to send us the alert that BLRX was making a run for the top. As soon as we received the alert, the CNA Finance team started digging to see exactly what was causing the movement. It didn’t take long to uncover the story. The gains seem to be the result of an analyst initiating coverage.

Early this morning, it was announced that Rodman & Renshaw has made the decision to initiate coverage on BioLineRx. The firm gave the stock a rating of BUY and a price target of $3.00, insinuating upside potential of well over 100%. In a statement, analyst Joseph Pantginis had the ofllowing to offer…

BioLineRx is developing assets which not only have the ability to be differentiated, but could also show significant synergy in making the exciting world of immunotherapy better. The company’s lead asset is BL-8040, and its program is running on multiple pistons with focus on oncology and stem cell mobilization (transplant). As a CXCR4 (cell adhesion, “glue”) antagonist, BL-8040 has the ability to impact multiple tumor types through a distinct mechanism of action based on a “one-two punch” and its overall ability (preclinical and clinical data) to impact the tumor microenvironment and play well with others in the combination sandbox (especially checkpoint inhibitors),

Our $3 price target is based on our clinical net present value (NPV) model, which is currently driven by the company’s lead asset, BL-8040. This model allows us to flex multiple assumptions affecting a drug’s potential commercial profile. Factors which could impede reaching our price target include failed or inconclusive clinical trials or inability of the company to secure adequate funding to progress its drugs through the development pathway.”

What We’ll Be Watching For Ahead

Moving forward, the CNA Finance team will be keeping a close eye on BLRX. In particular, we’ll be watching further developments associated with the company’s impressive pipeline, with a special eye on BL-8040. Nonetheless, we’ll be watching the news closely and bringing it to you as it breaks!

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