Vistagen Therapeutics Inc (NASDAQ: VTGN) is having an overwhelmingly strong start to the trading session this morning. However, when digging into the news, you’ll see that the company hasn’t released any news. So, what’s going on? It all has to do with a positive note from Oppenheimer. Today, we’ll talk about:
- The note from Oppenheimer;
- what we’re seeing from the stock;
- and what we’ll be watching for with regard to VTGN ahead.
VTGN Heads For The Top On Oppenheimer Note
As mentioned above Vistagen Therapeutics is having an incredibly strong start to the trading session this morning after the company was the center of a positive analyst note. Late in the day yesterday, Oppenheimer’s Jay Olson initiated coverage on the stock. When initiating coverage, the analyst gave a strong positive opinion, setting the price target on the stock to $6, representing a premium of more than 500%.
In the note, Olson pointed to two near-term catalysts as the reasons for his bullish opinion on the stock. The first of the two catalysts are the results from the Phase 2 trial of the rapid acting oral antidepressant, AV-101. In fact, results from the first clinical trial are expected to be released by the end of this year, with results from the second, much larger clinical trial, expected to be released in mid-2019. In the note, Olson said that if the trials are successful, pivotal trials could begin by early-2020 and a New Drug Application could be filed by 2022 and a commercial launch in 2023. Here’s a key snippet from the note:
Our view [is that] the company is underappreciated and undervalued, with a novel, potentially best-in-class, rapid acting oral antidepressant.
What We’re Seeing From The Stock
As investors, one of the first lessons that we learn is that the news moves the market. In the case of Vistagen Therapeutics, while the company didn’t release any news of its own, the news revolving around the stock proved to be overwhelmingly positive. After all, Oppenheimer is one of the most respected analyst firms on Wall Street, and the positive note is definitely a source of excitement. So, it’s no surprise that the stock is making a run for the top in the market this morning. At the moment (9:45), VTGN is trading at $1.57 per share after a gain of $0.60 per share or 61.54% 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 VTGN. In particular, we’re interested in following the ongoing development of AV-101. Nonetheless, we’ll continue to follow the story closely and bring the news to you as it breaks!
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