Bull Notes Keep Coming For These 2 Drugmakers

Analysts see much more upside for PCRX and RARE stocks

by Patrick Martin

Published on Aug 3, 2018 at 10:03 AM
Updated on Jun 24, 2020 at 10:16 AM

Two drug stocks received some bullish analyst attention this morning. Analysts believe both drugmakers Pacira Pharmaceuticals Inc (NASDAQ:PCRX) and Ultragenyx Pharmaceutical Inc (NASDAQ:RARE) are poised to keep climbing in the near future. 

PCRX Eyeing An Extended Rally

Pacira stock is up 4.4% to trade at $44.90, after three brokerages issued price-target hikes, including to $52 from $48 at H.C. Wainwright. The drug name is fresh off an upbeat earnings report yesterday, and the continued momentum today puts the shares at their highest mark since January, putting the stock right near its year-to-date breakeven point.

A short squeeze could drive PCRX even higher. Short interest fell by 16% in the two most recent reporting periods, yet the 4.01 million shares sold short represent nearly 13% of the equity's total available float. It would take seven days for shorts to buy back their positions, at the stock's average daily trading volume. 

RARE Extends Pullback Despite Bull Note

Ultragenyx stock is down 2.6% to trade at $77.52, despite Raymond James upping its price target by $15 to $86. The biotech concern also reported smaller-than-expected quarterly loss yesterday, which prompted three additional price-target hikes as well. Today's drop has RARE stock breaching its 50-day moving average, a trendline that briefly contained a pullback from the security's annual high of $87.33 on July 17.

A short squeeze is also in play for RARE. Short interest dropped off 2% in the most recent reporting period, but the 4.98 million shares sold short still represent almost 12% of the stock's total available float, and nearly 13 days' worth of pent-up buying power, based on average trading volumes.

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