MMR

Analyst: This Postpartum Drug Stock Can Triple

Analysts are overwhelmingly bullish on MRNS stock

Dec 10, 2018 at 9:55 AM
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    The shares of Marinus Pharmaceuticals Inc (NASDAQ:MRNS) are up 11.2% to trade at $5.75, after the biopharmaceutical firm said its postpartum depression drug, ganaxolone, was well-tolerated in a mid-stage study, and that patients showed no serious side effects to the treatment.

    Cantor Fitzgerald was quick to chime in, underscoring its "overweight" rating on MRNS stock, and raising its price target to $25 from $19 -- a 335% premium to current trading levels. This echoes the generally bullish bias among the brokerage bunch, with all four analysts in coverage maintaining the equivalent of a "strong buy" rating, and the average 12-month price target perched all the way up at $18.50.

    On the charts, MRNS stock topped out at a three-year high of $10.54 on Oct. 1, before plummeting all the way down to a seven-month low near $4 by Nov. 27. The shares have now retraced 23.6% of this plunge, and are pacing for their highest close since Nov. 1.

    A continued round of short covering could help Marinus Pharmaceuticals stock extend this recent bounce. Short interest is down almost 26% since its early July record peak, but there are 3.39 million shares still sold short. This represents a healthy 8.5% of the equity's available float, or 4.9 times the average daily pace of trading.

     

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