Upbeat trial results prompted an upgrade from RBC
Penny stock Proteostasis Therapeutics Inc (NASDAQ:PTI) is up a whopping 184% ahead of the bell, set to open as the best stock on the Nasdaq this morning. The biotech name yesterday reported positive trial data for its combination therapy for cystic fibrosis (CF), and in response, RBC upgraded PTI to "outperform" from "sector perform," while boosting its price target to $9 from $4. However, the analyst in coverage wasn't sure if the data is enough to suggest Proteostasis can compete with CF treatment leader Vertex Pharmaceuticals (VRTX).
Prior to today, 2018 had been a struggle for Proteostasis Therapeutics stock. Back in June, it gapped lower in the wake of disappointing early stage trial results. RBC at that time noted there was "work still to be done" on the treatment. Now, should today's price action pan out, PTI would erase its year-to-date deficit of 67.5%, as well as that bear gap from June.
The lofty price target from RBC today is territory PTI has not traded at since March 2017, though it peaked at $8.61 back in March. However, the note is indicative of the overall bullish mood from analysts. All four of the brokerages covering the equity rate it a "buy" or "strong buy," while its average 12-month price target sits all the way up at $13.50, a 614% premium to last night's closing perch at $1.89.