Sarepta stock has nearly tripled in the past year
Shares of InVitae Corp (NYSE:NVTA) and Sarepta Therapeutics Inc (NASDAQ:SRPT) are pointed higher this morning, after the two companies expanded their partnership in clinical research for Duchenne Muscular Dystrophy (DMD) treatments. The collaboration takes advantage of NVTA's genetic testing to find patients who may benefit from SRPT's clinical trials.
InVitae stock is up 0.9% to trade at $5.58, and on track to close above its 30-day moving average for the first time since a late-March sell-off sent NVTA to a record low of $4.35. Overall, the equity has shed 39% in 2018.
Ahead of the company's earnings report after the close on Wednesday, analysts remain committed to the healthcare stock. Of the six brokerages covering NVTA, five rate it a "strong buy," with zero "sells." Furthermore, the security's average 12-month price target of $11 is more than double its current perch.
At last check, Sarepta stock is up 3% to trade at $92.50, and earlier hit a fresh 17-year high of $92.96. Adding to the bullish buzz, H.C. Wainwright issued a price-target hike to $96 from $90, while reiterating its "buy" rating.
This just continues Friday's momentum, when SRPT stock shot 14% following an upbeat earnings report -- breaking through recent congestion in the $83-$84 region. The shares have nearly tripled in the past year and have tacked on 65% in 2018.
A short squeeze could provide even more tailwinds for the drug stock. The 10.06 million shares sold short represents 17.6% of SRPT's total available float. At the security's average daily trading volume, it would take more than eight days to repurchase these bearish bets.