Analyst: This Biotech Stock Could Rally 50%

Leerink is encouraged by TTOO's recent FDA nod for its bacteria detection test

Jun 1, 2018 at 10:06 AM
facebook X logo linkedin


The shares of T2 Biosystems Inc (NASDAQ:TTOO) started the week on a high note, notching a nearly two-year high of $9.05 early Tuesday, after the Food and Drug Administration (FDA) approved the firm's bacteria detection test in human blood specimens. However, the equity ended that session lower, and before the open today was pacing for its worst week since June 2017, as traders reacted to the company's $7.50-per-share stock offering. TTOO stock is chipping away at that deficit this morning, though, up 5.5% at $7.82, thanks to a bullish analyst note.

Specifically, Leerink upgraded T2 Biosystems stock to "outperform" from "market perform," and more than doubled its price target to $12 from $5 -- territory not seen since late 2015, and more than 50% above the equity's current price. The analyst said T2's recent FDA nod "dramatically" improves the biotech's market opportunity to more than $3 billion from $1.4 billion, and waxed optimistic on the company's ability to dive into the bacterial sepsis market via emergency rooms.

Very few analysts currently follow TTOO stock. Right now, just three brokerage firms have chimed in, with two offering up "strong buy" opinions, and the other sitting on a "hold." The security's new price target from Leerink is nothing new, though. TTOO's average 12-month price target sits at $12.30.

Even with the aforementioned pullback this week, T2 Biosystems shares are still up more than 100% year-over-year. Should the stock extend its quest for new highs, a short squeeze could add fuel to the fire. Short interest currently represents nearly a week's worth of pent-up buying demand, at TTOO'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 C3.ai calls
238.5% GAIN on Oracle calls

 
 
 


 
 

Rainmaker Ads CGI