Clovis Oncology Inc (NASDAQ: CLVS)
If you’ve read my previous posts about Goldman Sachs, you know that I’m not a big fan of the company, nor their analysts. Nonetheless, everyone is talking about their most recent upgrade, and personally, I think they got it right. Earlier today, Terence Flynn, a Goldman Sachs analysts upgraded CLVS to a Buy rating from a Neutral rating; raising the company’s target price to $117 from $68. The analyst upgrade was the result of increased sales expectations for Roci. Here’s what Flynn had to say…
“Earlier this year CLVS reported updated PH2 data from Roci, which in our view begin to differentiate the drug from AZN’s AZD9291 (nearest competitor) on efficacy as well as increase our confidence that CLVS will be able to successfully move the drug into the front-line setting (larger market opportunity), where a Ph2/3 trial is going…”
How CLVS Reacted To The News
In morning trading, Clovis Oncology stock increased in value by more than 10% as investor excitement reigned supreme following the positive news. While the strong momentum has slowed to steady gains, we’re still seeing quite a bit of upward movement as the stock continues to push pass resistance. Currently (1:14), CLVS is trading at $86.92 per share after a gain so far of 12.29%.
What We Can Expect From Clovis Oncology Stock Moving Forward
With regard to the spike from the positive Goldman Sachs news, I think that we’ve seen about all the strong movement we’re going to see. However, it’s important to dig into the upgrade and really understand the reasoning for the long term outlook. The reality is that recent trials have shown that CLVS is has created something unique with regard to treatment; and experts are expecting Roci to take the market by story. As we move through the later end of the trials, and the drug does hit the market, I think we’re going to see massive long term gains.
What Do You Think?
Where do you think CLVS is headed and why? Let us know in the comments below!