Canaccord Genuity called this name a 'compelling growth story'
Canaccord Genuity initiated coverage on Neuronetics Inc (NASDAQ:STIM) with a "buy" rating, and a $33 price target -- a 27% premium to last night's close, and uncharted territory for the Wall Street newcomer. The brokerage firm said the psychiatric specialist is a "compelling growth story," and cited a "first-mover advantage" for the company's NeuroStar platform, which uses Transcranial Magnetic Stimulation (TMS) to treat depression.
STIM shares initially jumped 3.8% in reaction to the bull note, but has since swung 0.1% lower to trade at $26.00. The stock opened for trading on June 28 at $25, well above the initial public offering (IPO) price of $17. Neuronetics stock rallied all the way up to $29.84 that day -- its highest point to date -- while its current all-time low of $23.96 was hit that same day.
Nevertheless, Canaccord Genuity isn't the first brokerage firm to wax optimistic on the healthcare stock. On Monday, July 23, William Blair began coverage on STIM stock with an "outperform" rating.
Roth Capital began coverage on Menlo Therapeutics Inc (NASDAQ:MNLO) with a "buy" recommendation and $29 price target, representing expected upside of 287% to Monday's close. The analyst in coverage cited the biopharmaceutical firm's mid- and late-stage trials for its pruritus treatments as potentially positive catalysts.
MNLO stock was up 12.7% at its intraday peak, and was last seen 3.1% higher at $7.73. The equity's longer-term technical performance has been far from inspiring, though, with the shares gapping nearly 77% lower back on April 9 following disappointing data for its itch treatment. Since then, the equity has been churning near its post-gap closing level, with today's rally running out of steam near the 50-day moving average.
