Analyst: This Red-Hot Pharma Stock Could Triple

CMTA stock is sitting atop the Nasdaq after upbeat drug data

Oct 24, 2018 at 1:06 PM
facebook twitter linkedin

While most of the stock market is struggling today, the shares of Clementia Pharmaceuticals Inc (NASDAQ:CMTA) are sitting atop the Nasdaq, skyrocketing on encouraging drug data. Specifically, the firm unveiled upbeat data on its bone disease drug -- which already has "orphan drug," "fast track," and "breakthrough therapy" designations from the Food and Drug Administration (FDA) -- and said it expects to submit a marketing application for palovarotene to the regulators in the second half of next year. Against this backdrop, several analysts weighed in on soaring CMTA stock, last seen up 37% at $14.20 -- and set for its best day ever.

B. Riley FBR, Morgan Stanley, and Leerink lifted their price targets to $20, $27, and $28, respectively. Meanwhile, Wedbush hiked its target on CMTA to $31 from $26 -- implying roughly 200% upside from the stock's close of $10.34 yesterday.

Clementia Pharmaceuticals went public in early August 2017, for an initial public offering (IPO) price of $15. The stock spent the first few months hovering just north of that level, before soaring to an all-time high of $20.15 in late December. Since a palovarotene-related bear gap in May, however, it's been a rough road for CMTA, which eventually fell to an all-time low of $8.10 in August. Should today's gains hold, the stock will will settle atop its 100-day moving average for the first time since that bear gap.

CMTA stock chart oct 24

Several short sellers could be getting squeezed today. Short interest represents nearly 7% of CMTA's total available float, and would take nearly 23 sessions to buy back, at the equity's average pace of trading.


Now is the time to join our thriving community of Event Traders who consistently profit from every earnings season. With this discounted subscription opportunity, you'll stay ahead of the curve and seize opportunities others miss. Do not let Q3 earnings season pass you by – subscribe now and supercharge your portfolio with expert insights that turn market reactions into profit-generating opportunities!! Don't waste another second... join us right now before the next trade targeting +200% is released!