Analyst: This Healthcare Stock Could Rally 80%

Shorts are likely getting spooked amid BEAT stock's surge

Jul 26, 2018 at 2:10 PM
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The shares of BioTelemetry Inc (NASDAQ:BEAT) are soaring today, after the mobile cardiac monitoring specialist received a big bull note after last night's earnings report. BEAT stock was last seen trading up 10.7% at $54 -- fresh off a record high of $57.35 -- pacing toward its best day since April 26.

The Pennsylvania-based firm reported second-quarter adjusted earnings of 46 cents per share on $101.4 million in revenue -- well above the consensus estimate of a per-share profit of 30 cents on $95.9 million in revenue.

The quarterly results attracted a round of upbeat brokerage notes, with no fewer than four analysts hiking their BEAT price targets. The most optimistic outlook came from Lake Capital, which lifted its price target to $90 from $50 -- an 84% premium to last night's close -- citing optimism surrounding the Apple partner's LifeWatch integration and the "tremendous momentum" of its Research Services segment.

Analysts are already bullish on BEAT stock, with all four in coverage maintaining a "buy" rating. Plus, the average 12-month price target is docked at $63, representing expected upside of 15% to the equity's current perch.

However, a round of short covering could help BioTelemetry stock add to its 81% year-to-date gain -- and could potentially be fueling today's fire. The 2.93 million shares sold short represent 9.1% of BEAT's float, and would take 11.4 days to cover, at the security's average daily pace of trading.

 

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