The shares are trading at a steep discount to their mid-July IPO price
The shares of Constellation Pharmaceuticals Inc (NASDAQ:CNST) are up 5% to trade at $10.35, after BMO started coverage on the cancer specialist with an "outperform" recommendation and a $19 price target -- a nearly 93% premium to last Friday's close. The analyst in coverage said the stock still has not priced in the full valuation of its myelofibrosis treatment, CPI-0610, and could potentially hit $35 per share once this is realized.
J.P. Morgan Securities and Oppenheimer both took a glass-half-full approach to CNST stock, both initiating coverage with an "outperform" rating and $17 and $21 price targets, respectively. The former brokerage firm said CNST stock's massive drop from its mid-June initial public offering (IPO) has created an "interesting/compelling entry point ahead of more robust proof-of-concept data."
Specifically, Constellation Pharmaceuticals stock went priced its IPO at $15 per share back on July 18, before opening the next day at $11.48. The shares have continued to trend lower since then, bottoming at a record low of $9 one week ago today.
