Analyst Update: Applied Optoelectronics Inc, Ligand Pharmaceuticals Inc., and Momenta Pharmaceuticals, Inc.

Analysts are weighing in on Applied Optoelectronics Inc (NASDAQ:AAOI), Ligand Pharmaceuticals Inc. (NASDAQ:LGND) and Momenta Pharmaceuticals, Inc. (NASDAQ:MNTA)

Josh Selway

Sep 7, 2016 at 3:26 PM

Analysts are weighing in on fiber optics expert Applied Optoelectronics Inc (NASDAQ:AAOI), as well as biotech stocks Ligand Pharmaceuticals Inc. (NASDAQ:LGND) and Momenta Pharmaceuticals, Inc. (NASDAQ:MNTA). Here's a quick roundup of today's brokerage notes on AAOI, LGND, and MNTA.

Bullish analyst notes are coming through on AAOI, after the company raised its current-quarter outlook. At least six brokerage firms have raised their price targets on the stock, including Piper Jaffray, which set its mark at $24 -- territory not charted since July 2014. The brokerage firm said it believes the company "is in a position to see impressive growth over the next several quarters." As such, Applied Optoelectronics Inc is up 14.8% at $19.90, and could run higher if short sellers begin to cover. Currently, short interest accounts for one-fourth of the stock's float, or 8.4 times the average pace of trading.

LGND is up 5.9% at $114.47, following a price-target increase to $151 from $149 at Roth Capital. Specifically, the brokerage firm said positive mid-stage trial data for Retrophin Inc's (NASDAQ:RTRX) kidney drug, sparsentan -- which LGND holds the rights to -- is "an important win" for both companies. Bullish analyst attention is nothing new for the stock, which boasts four "strong buy" recommendations, versus a single "strong sell." This optimism appears well-deserved, though, since Ligand Pharmaceuticals Inc. sports a roughly 21% year-over-year lead, even after a major pullback last month.

MNTA is sliding after a downgrade to "sell" from "hold" at Maxim. The shares have shed 4% to trade at $11.74, bringing their losses for the year to almost 21%. If Momenta Pharmaceuticals, Inc. continues to struggle on the charts, a round of bearish analyst attention could create additional headwinds. The majority of analysts on Wall Street consider the stock a "strong buy," despite its disappointing performance, without a single "sell" to be found.

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