ATXI began trading publicly in late June of last year
Pharmaceutical concern Avenue Therapeutics Inc (NASDAQ:ATXI) is lower in afternoon trading, erasing early gains likely due to broad-market headwinds. Nevertheless, one analyst thinks ATXI could more than double on the charts, and initiated coverage with a "buy" rating.
Specifically, H.C. Wainwright started the penny stock with a "buy" endorsement and $11 price target -- representing a 173% premium to the stock's close of $4.02 on Friday. The analyst waxed optimistic on Avenue Therapeutics' intravenous Tramadol, which is "currently in Phase 3 development for moderate to moderately severe post-operative pain." Further, the drug would be the "only IV opioid in the U.S. with a DEA Schedule IV," and the significantly lower abuse potential compared to Schedule II pain meds is appealing "given the overriding issue of the opioid crisis in the U.S."
In the wake of the upbeat analyst attention, ATXI stock was initially in the black, rising as high as $4.13. Since then, however, the equity has turned 7.7% lower to trade around $3.71. From a longer-term perspective, Avenue Therapeutics stock has been in a channel of lower highs since mid-March, when the equity stalled in the $6 region -- its initial public offering (IPO) price almost exactly one year ago.
That being said, short sellers have started piling on. Specifically, during the past two reporting periods, ATXI has short interest surge 168%. However, these bearish bets still represent not even 1% of the equity's total available float.