The Drug Stock Due for a Short Squeeze

FCEL stock is at risk of falling back below its 40-week moving average

Karee Venema

Sep 8, 2017 at 9:45 AM

Analysts are weighing in on biotech NewLink Genetics Corp (NASDAQ:NLNK), fuel cell specialist FuelCell Energy Inc (NASDAQ:FCEL), and tech stock GoPro Inc (NASDAQ:GPRO). Here's a quick roundup of today's bullish brokerage notes on shares of NLNK, FCEL, and GPRO.

Jefferies Thinks It's Time to Buy NLNK Stock

Jefferies upgraded NewLink Genetics stock to "buy" from "hold" and boosted its price target to $26 from $7. This follows Thursday's nearly 75% surge in NLNK shares on positive data on the combination melanoma treatment, with the brokerage firm expecting "additional upside" for the stock. Based on last night's close at $13.60, Jefferies new price target for Newlink stock represents expected upside of 91%, and sits in territory not seen since February 2016.

With NLNK up an additional 4.7% today to trade at $14.44 -- bringing its year-to-date advance to 40.5% -- short sellers are likely feeling the heat. More than 28% of the equity's float is sold short, or 16.5 times the average daily pace of trading.

FCEL Stock Can't Capitalize on Upbeat Analyst Note

FuelCell Energy saw its price target raised to $2.50 from $2.00 at Cowen and Company, a level the stock has not traded near since last November and higher than the average 12-month price target of $2.38. Nevertheless, FCEL stock is down 1.3% to trade at $1.50, widening its 2017 deficit to 14.3%. What's more, the shares are at risk of falling back below their 40-week moving average, after last week notching their first close north of here since June 2016.

GPRO Stock Rally Fizzles Out

GoPro shares gapped more than 19% higher on Thursday thanks to the company's strong guidance, closing back in double-digit territory. The stock is down 1.1% today at $9.89, however, despite price-target hikes from Morgan Stanley (to $9.50) and Citigroup (to $10.50).

The shares are up 13.5% year-to-date, and GPRO options traders have been pricing in even more upside. At the International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), the equity's 10-day call/put volume ratio of 2.69 ranks in the 75th annual percentile, meaning calls have been bought to open over puts on GoPro stock at a faster-than-usual pace.

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