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Analyst: This Biotech Stock Could Surge 73%

RBC sees higher highs ahead for BioCryst Pharmaceuticals shares

Dec 4, 2018 at 10:29 AM
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BioCryst Pharmaceuticals, Inc. (NASDAQ:BCRX) stock has been on fire lately, more than doubling in the past year. What's more, analysts at RBC see lots more upside in store for BCRX shares, hiking their price target to $16 from $10 -- representing a premium of about 73% to the security's close of $9.27 on Monday, and in territory not charted since mid-2015.

BCRX stock was last seen 2.9% higher to trade at $9.54. On Nov. 20, the shares bolted higher following the company's appointment of rare disease expert Theresa Heggie to its board, with the equity notching an annual high of $9.70 on Nov. 23. BioCryst shares are back within striking distance of that peak, and are set for their highest close in nearly two years today.

There's certainly plenty of sideline cash to fuel additional gains, too. Short interest on BCRX has been dwindling in recent reporting periods, but still accounts for a healthy 8.6% of the equity's total available float. At the stock's average daily trading volume, it would take about three weeks to buy back the remaining bearish bets. That's plenty of fuel for a short-squeeze rally.

What's more, traders looking to speculate on BCRX's near-term trajectory should consider options. The stock's Schaeffer's Volatility Index (SVI) of 70% is in just the 13th percentile of its annual range, suggesting short-term options are pricing in relatively low volatility expectations for the shares. In other words, BioCryst Pharmaceuticals' near-term options are attractively priced at the moment.

 

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