Jefferies just initiated coverage on Millendo Therapeutics Inc (NASDAQ:MLND) with a "buy" rating and a $22 price target. The analyst said that Wall Street is overlooking the biopharmaceutical's treatments for a pair of orphan diseases, despite positive trial data and upbeat revenue expectations, and noted an attractive risk/reward setup. This recommendation comes ahead of Millendo Therapeutics' presentation at the Oppenheimer Healthcare Conference, next Tuesday, March 19.
Today, the stock is up 0.5% at $12.12. MLND bottomed out at an all-time low of $6.77 on Dec. 27, but quickly recovered -- now up 54.8% year-to-date, with a boost from its 20-day moving average. While some pressure at the $12.75 area has caused the equity to stall out, MLND's 200-day moving average appears to have switched to a supportive role recently.
Analysts are relatively quiet on the pharma stock, but the two that were already following Millendo at last night's close give it a "strong buy" rating. Plus, the consensus 12-month target price of $25 is more than double current levels.
The equity's recent rally has had short sellers jumping ship. Short interest dropped 3% in the most recent reporting period. The 68,476 shares currently sold short represents a mere 0.6% of the stock's float, but over two weeks of trading, at MLND's average daily trading volume.