Outlook Therapeutics Inc (NASDAQ: OTLK) is having an incredibly strong start to the trading session this morning, following up on recent gains. In fact, this is the third consecutive trading session that we’ve seen the stock fly toward the top in. Today, we’ll talk about:
- Why OTLK stock is headed up;
- what we’re seeing in the market; and
- what we’ll be watching for ahead.
Why OTLK Stock Is Headed Up
As mentioned above, Outlook Therapeutics is having a great day in the market today, following up on the recent run for the top that we’ve seen. So, what’s the deal?
The gains started after the company recently reported its financial results. However, finances aren’t what’s driving the movement. The gains surround the company’s work with ONS-5010.
In the report, OTLK offered up a positive update surrounding the drug that’s being developed for the treatment of wet AMD. This is an interesting indication as it is commonly treated with Avastin, an oncology drug.
Should the company receive approval for ONS-5010, physicians will have a strong on-label option, giving the company the ability to take the market by storm.
In fact, this is why Oppenheimer recently initiated coverage on the stock. In their report, Oppenheimer gave the stock an outperform rating and a price target of $12. Should the stock reach this mark, we’re talking about gains in more than 4 multiples.
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.
First and foremost, with a positive clinical update surrounding ONS-5010, investors are excited about the future of the drug. Moreover, with a highly-trusted analyst weighing in with such a positive opinion, the excitement is only growing. So, it’s not a shocker to see that the stock is haeaded up.
As is just about always the case, our partners at Trade Ideas were the first to alert us to the gains. Currently (10:00), OTLK is trading at $2.73 per share after a gain of $0.63 per share or 30.00% 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 as the drug has the potential to be a blockbuster. Nonetheless, we’ll keep a close eye on the story and bring the news to you as it breaks!
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