2 Healthcare Stocks Analysts Call "Buys"

Piper Jaffray is bullish on MYGN's GeneSight genetic test

by Josh Selway

Published on Oct 10, 2018 at 2:00 PM

Stocks are getting hammered today, with the tech sector leading the pullback. Three healthcare names making big moves are Myriad Genetics, Inc. (NASDAQ:MYGN), Ra Pharmaceuticals, Inc. (NASDAQ:RARX), and AcelRx Pharmaceuticals Inc (NASDAQ:ACRX). Check out what's happening with shares of MYGN, RARX, and ACRX below.

MYGN Gets Bull Note From Piper Jaffray

MYGN shares are trading up 7.1% at $46.26, jumping above recent resistance from the 20-day moving average, thanks to a price-target lift to $54 from $51 at Morgan Stanley and a bullish call out of Piper Jaffray. The latter brokerage firm lifted its rating on the diagnostics name to "overweight" from "neutral" and set a $53 price target, saying the company's GeneSight genetic test could increase revenue by $400 million. The stock has been a strong gainer since early May, when it was trading right around $28, and sports a year-to-date advance of almost 35%.

Meanwhile, short-term options traders have been extremely put-skewed on Myriad Genetics. This is according to its Schaeffer's put/call open interest ratio (SOIR) of 1.83, which ranks in the 96th annual percentile.

RARX Stock Pullback Comes to a Halt

RARX stock is up 7.8% to trade at $15.74, after a "strong buy" recommendation from Raymond James. The analyst note, which noted a price target of $28, cited potentially strong data from the company's C5 inhibitor, zilucoplan, due out later this year.

Today's spike puts an end to the shares' precipitous decline since the Oct. 1 high of $19.43, trading back near their year-over-year breakeven point. Analysts are somewhat bullish on the drugmaker, with an average 12-month price target of $22.17.

FDA Report Gives AcelRx Pharmaceuticals a Boost

ACRX stock is up 30% at $3.44, after the Food and Drug Administration (FDA) said the company's opioid painkiller could be used in hospitals. This prompted Ladenburg Thalmann to raise its price target to $10 from $7 -- territory not seen since 2014. Looking closer, AcelRx Pharmaceuticals' peak today occurred near its 20-day moving average. Sentiment on the security remains mostly upbeat, with four of six analysts sporting "buy" or "strong buy" ratings.

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