A short squeeze could propel the outperformer even higher
The shares of Rocket Pharmaceuticals Inc (NASDAQ:RCKT) -- which specializes in rare disease therapies -- are higher today, thanks to some bullish analyst attention. Specifically, William Blair initiated coverage of RCKT stock with an "outperform" rating and a fair-value target of $32 -- representing expected upside of 63% from the security's close of $19.68 on Monday. The analyst wrote that Rocket Pharma has "ambitious goals for a relatively young company, [but] execution on this strategy could unlock significant value creation for shareholders."
Rocket Pharmaceuticals stock was last seen 3.9% higher to trade at $20.45. The company merged with Inotek Pharmaceuticals in early January, and has nearly doubled year-to-date, with pullbacks contained by its 80-day moving average. Further, RCKT stock today is set to end atop its 20-day moving average for the first time since June 20, when the shares were still lingering near annual-high territory.
An unwinding of short interest could also propel RCKT higher. Short interest jumped 52.2% during the past two reporting periods, and now accounts for more than 2 million Rocket Pharmaceuticals shares. At the security's average pace of trading, it would take more than six sessions to repurchase these pessimistic positions -- ample fuel for a short squeeze.