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Analyst: This Pharma Stock Can Soar 164%

New Age Beverages stock is up almost 66%

Sep 19, 2018 at 3:05 PM
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The Dow is soaring today as financial shares surge ahead of next week's Fed meeting. Among other stocks making notable moves are cannabis drinkmaker New Age Beverages Corp (NASDAQ:NBEV), eye disease specialist Aerpio Pharmaceuticals Inc (NASDAQ:ARPO), and travel name Trivago NV (NASDAQ:TRVG). Here's a quick look at what's moving shares of NBEV, ARPO, and TRVG.

NBEV Stock Soars on News of CBD Drink Reveal

Stocks with exposure to the cannabis market are soaring today, following well-received comments from the head of Tilray (TLRY). Additionally, New Age Beverages stock is getting a lift on news to Colorado-based firm will debut its line of cannabidiol (CBD) drinks on Monday, Oct. 8, and will begin taking orders from retailers. At last check, NBEV stock is up 65.6% at $4.67, fresh off an annual high of $4.74.

The shares have now added 231% this month, pacing toward their best quarter since late 2016, and options traders are targeting even more upside by week's end. Amid accelerated options volume -- nearly 33,000 contracts are on the tape, 26 times the average intraday amount and a new annual high -- buy-to-open activity has been detected at the September 5 call, which expires at the close this Friday, Sept. 21.

Guggenheim Says Buy Aerpio Pharmaceuticals Stock

Guggenheim initiated coverage on Aerpio Pharmaceuticals with a "buy" rating and $10 price target -- a 164% premium to last night's close. The brokerage firm waxed optimistic on the company's self-administered diabetic eye disease treatment -- the first of its kind -- saying the market could be as large as 5 million patients.

In reaction, ARPO stock is up 3.6% at $3.93, on track for its first close north of its 120-day moving average since June 25. The shares are still staring at a 37% year-over-year deficit, though.

Trivago Stock Rally Hits a Roadblock

Trivago stock is up 11.2% to trade at $5.72 -- on track for its biggest one-day gain since Jan. 25 -- after a Securities and Exchange Commission (SEC) filing showed the travel name's largest shareholder, Par Capital, boosted its stake. This rally ran out of steam earlier near $5.93, which is home to the equity's late-April bear-gap highs. Plus, TRVG remains down 16.4% year-to-date.

Against this backdrop, most analysts are skeptical of TRVG stock. Of the 13 brokerages covering the equity, 12 maintain a "hold" or worse. Plus, the average 12-month price target of $5.05 is a nearly 12% discount to current trading levels.

 

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