Berenberg Bets on a Bounce for This Biotech Stock

The majority of analysts following Xencor consider it a "strong buy"

Digital Content Manager
Mar 27, 2019 at 2:57 PM
facebook X logo linkedin

Biotech concern Xencor Inc (NASDAQ:XNCR) is higher today, after Berenberg Capital Markets initiated coverage with a "buy" rating and a $45 price target, which represents an almost 50% premium to Tuesday's close at $31.54. The brokerage firm predicts a rebound for XNCR, and waxed optimistic on the company's Ultomiris and MOR-208 treatments. As a result, the stock is up 2.3% at $32.26 in afternoon trading.

From a longer-term perspective, though, XNCR has been in a channel of lower highs since hitting its all-time peak of $48.38 in mid-September. XNCR just bottomed out at a 10-month low on March 14, but has run into a wall around the $32- $33 level -- a former layer of support and now home to the stock's descending 50-day moving average.

XNCR Chart March 27

Despite XNCR's struggles, Berenberg is far from alone in the bulls' corner. Before today, the stock boasted six "strong buy" ratings, and only one "strong sell." Plus, the $42.75 consensus 12-month price target represents a 34% premium to current levels, and an area not charted by the stock since November. 

Should the analyst's prediction come to fruition, a short squeeze could be in the cards for Xencor. The 2.96 million shares sold short currently represent a healthy 6.5% of the stock's available float. At the equity's average daily trading volume, it would take a little under two weeks for short sellers to buy back all of these pessimistic positions. 


Target Effortless Triple-Digit Gains Every Sunday Evening For Life!

This is your chance to triple your profit potential on Sunday evenings, without spending all your free time watching the market.

On Sundays, as a Weekend Plus subscriber, you’ll get up to 6 trades every Sunday, each targeting gains of 200% or more.

Start targeting gains like the ones our subscribers have seen recently, including:

213.3% GAIN on AutoNation calls
100.0% GAIN on Monster Beverage calls
100.4% GAIN on Walgreens Boots Alliance puts
100.4% GAIN on ON Semiconductor calls
257.7% GAIN on Dell calls

101.0% GAIN on Apollo Global Management calls
103.6% GAIN on JP Morgan  Chase calls
105.3% GAIN on DraftKings calls
101.3% GAIN on Airbnb calls
203.0% GAIN on Shopify calls
102.0% GAIN on Cboe Global Markets calls
100.9% GAIN on Boeing calls
102.1% GAIN on Microsoft puts
102.3% GAIN on First Solar calls
101.5% GAIN on PulteGroup calls
101.0% GAIN on Apple calls
209.4% GAIN on NXP Semiconductors calls
100.8% GAIN on Uber Technologies calls
100.4% GAIN on Academy Sports and Outdoors puts
102.2% GAIN on Trade Desk calls
100.8% GAIN on DoorDash calls
100.0% GAIN on Camping World Holdings puts
100.0% GAIN on Cboe Global Markets calls
100.2% GAIN on calls
238.5% GAIN on Oracle calls



Rainmaker Ads CGI