Sarepta Stock Expected to Rally Another 30%

Guggenheim named Mylan its top pick among generic drug makers

Managing Editor
Dec 12, 2017 at 10:08 AM
facebook X logo linkedin

Drug stocks have put in a strong performance in 2017, and analysts are taking note. This morning, the shares of biotechs Mylan N.V. (NASDAQ:MYL) and Sarepta Therapeutics Inc (NASDAQ:SRPT) are enjoying some bullish analyst attention. Below, we will take a closer look at these bullish brokerage notes, and see how the stocks are reacting. 

Mylan Stock is Guggenheim's 'Top Pick'

Guggenheim initiated coverage on Mylan with a "buy" rating this morning, saying the company is better positioned against its peers following unexpected Food and Drug Administration (FDA) approval of its generic multiple sclerosis therapy drug in October. MYL stock is up 1.6% to trade at $40.14 -- blowing past familiar resistance at $39.80, after closing near here yesterday. This region has kept a tight lid on MYL since April, and represents a 61.8% Fibonacci retracement of the stock's 2017 decline.

Options traders have been betting on resistance to hold, too. The stock's January 2018 40-strike put has seen the biggest rise in open interest over the last two weeks, with more than 18,000 contracts added, and data from the major options exchanges confirms significant sell-to-open activity here. The last time MYL closed a week above $40 was in early June.

Cowen Sees Multi-Year Highs for Sarepta Stock

Sarepta received a price-target hike to $71 from $69 at Cowen and Company -- territory not charted since February 2002 -- waxing optimistic over the launch of the drugmaker's muscle wasting disorder drug Exondys 51, as well as the pipeline for its Duchenne muscular dystrophy treatments. Nevertheless, SRPT stock down 0.2% to trade at $54.28 this morning. The stock has still tacked on 98% year-to-date, and touched an annual high of $57.57 on Nov. 7. Plus, the shares' rising 50-day moving average has contained almost all pullbacks since June.

A short squeeze could provide more fuel for SRPT's fire. Short interest increased by 20.6% during the last reporting period to 10.60 million shares, or roughly 22% of the stock's total available float. It would take nearly five days for shorts to fully cover their positions, at SRPT's average pace of trading.


Target Effortless Triple-Digit Gains Every Sunday Evening For Life!

This is your chance to triple your profit potential on Sunday evenings, without spending all your free time watching the market.

On Sundays, as a Weekend Plus subscriber, you’ll get up to 6 trades every Sunday, each targeting gains of 200% or more.

Start targeting gains like the ones our subscribers have seen recently, including:

213.3% GAIN on AutoNation calls
100.0% GAIN on Monster Beverage calls
100.4% GAIN on Walgreens Boots Alliance puts
100.4% GAIN on ON Semiconductor calls
257.7% GAIN on Dell calls

101.0% GAIN on Apollo Global Management calls
103.6% GAIN on JP Morgan  Chase calls
105.3% GAIN on DraftKings calls
101.3% GAIN on Airbnb calls
203.0% GAIN on Shopify calls
102.0% GAIN on Cboe Global Markets calls
100.9% GAIN on Boeing calls
102.1% GAIN on Microsoft puts
102.3% GAIN on First Solar calls
101.5% GAIN on PulteGroup calls
101.0% GAIN on Apple calls
209.4% GAIN on NXP Semiconductors calls
100.8% GAIN on Uber Technologies calls
100.4% GAIN on Academy Sports and Outdoors puts
102.2% GAIN on Trade Desk calls
100.8% GAIN on DoorDash calls
100.0% GAIN on Camping World Holdings puts
100.0% GAIN on Cboe Global Markets calls
100.2% GAIN on calls
238.5% GAIN on Oracle calls



Rainmaker Ads CGI