Outlook Therapeutics Inc (NASDAQ: OTLK) is having yet another incredibly strong day in the market today, following yesterday’s dramatic run as a result of financial results and a corporate update. The gains today seem to be the result of continoued financial results excitement combined with an analyst initiation. Today, we’ll talk about:
- The analyst initiation;
- what we’re seeing from OTLK stock as a result; and
- what we’ll be watching for ahead.
Here’s Why OTLK Is Climbing
As mentioned above, Outlook Therapeutics had a strong run in the market yesterday after releasing financial results and a corporate update. Today, the gains continue as analyst coverage takes center stage.
Recently, Oppenheimer initiated coverage of OTLK. With the coverage, the firm set a price target on the stock of $12 with a rating of outperform. This is overwhelmingly positive news as Oppenheimer is one of the most trusted analyst firms on Wall Street today.
The high price target suggests that gains in multiples are ahead. Moreover, its a massive show of confidence for this tiny biotechnology company.
The value that Oppenheimer sees in OTLK comes from its formulation of bevacizumab, known as ONS-5010. The treatment is being developed as a potential option for patients with wet age-realted macular degeneration, also known as Wet AMD.
At the moment, there is not much competition in the space. In fact, Avastin, estimated to account for 50% of wet AMD prescriptions is actually being used off-label, but is the popular option. Should ONS-5010 be approved by the FDA, it could take the wet AMD market by storm, proving to be the goose that lays the golden eggs.
What We’re Seeing From The Stock
One of the first lessons that we learn when we start to work in the market is that the news leads to moves. When it comes to Outlook Therapeutics, recent news has been overwhelmingly positive.
After all, recent developments surrounding ONS-5010 have been positive. With the initiation at Oppenheimer, the excitement is only growing as investors continue to push the stock for the top.
As is just about always the case, our partners at Trade Ideas were the first to alert us to the gains. Currently (9:51), OTLK is trading at $2.13 per share after a gain of $0.60 per share or 39.22% thus far today.
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What We’ll Be Watching For Ahead
Moving forward, the CNA Finance team will continue to keep a close eye on OTLK. In particular, we’re interested in following the story surrounding the company’s continued work to bring ONS-5010 to market. Nonetheless, we’ll keep a close eye on the news and bring it to you as it breaks!
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