Oncothyreon Inc (USA) (NASDAQ: ONTY)
Oncothyreon stock has had an incredible day in the market today. After a slight climb that brought the stock to a closing price of $2.02 yesterday, the stock is up more than 30% today. So, What’s the reason for the climb, and what can we expect to see in the short term and in the long term from ONTY? Here’s my take on it.
Zacks Upgrade Makes ONTY Appealing
I’ve looked at several different sources and tried to find multiple reasons for the climb. However, the only positive news I was able to dig up from the company has been earnings and analysts. Recently, several analysts have weighed in with their opinions on ONTY. However, most recently has been Zacks; and it seems as though their upgraded opinion is the reason for the climb. Yesterday, Zacks announced that they’ve upgraded the stock from a “Hold” rating to a “Buy” rating; giving it a target price of $2.25. While the stock has grown much further past $2.25 per share at this point, this seems to be the cause of the growth.
What We Can Expect To See From Oncothyreon In The Short Term
To be honest, I find this breakout to be incredibly interesting. The reality is that the momentum was started by an upgrade targeting the value of the stock to be $2.25 per share. However, we saw this thing as high as $2.84 at the peak of the trend a little more than an hour ago. With that said, the slight push of momentum was enough to get this trend really rolling and investor excitement has taken hold. Given the fact that price movements in the market are a series of overreactions; I’d imagine that a decent correction is coming soon. Nonetheless, I don’t see the price falling to $2.25 or anywhere near that any time soon. What I think we’ll most likely see is a slight decline as investors get concerned about resistance. From there, we should see another bounce; giving day traders the perfect opportunity to buy on the pull back.
What We Can Expect To See From ONTY In The Long Run
In the long run, I’m also expecting to see great things. Looking past the analyst upgrades we’ve seen recently, the company seems to be very strong fundamentally. This clinically stage biopharmaceuticals company focuses on the development and commercialization of therapeutic products for the treatment of cancer. When you look at their current pipeline, the company has several candidates designed to target cancer in incredibly effective ways. Oncothyreon’s primary goal is to develop and commercialize novel synthetic vaccines and target small molecules that have the potential to improve the lives and outcomes of cancer patients. Among the candidates in it’s pipeline is, and the leader of the charge is Stimuvax. This flagship candidate is a cancer vaccine in Phase III development for non-small cell lung cancer. With their incredible pipeline, management that has proven to take charge, and an exclusive, worldwide collaboration agreement with Merck for the development and commercialization of Stimuvax, I think we’re going to see great things to come from Oncothyreon and it’s stock in the long run.
What Do You Think?
Where do you think ONTY is headed and why? Let us know in the comments below!