3 Pharma Stocks Expected to Double

XENE, TGTX, and VKTX shares are higher after analysts chimed in

Mar 29, 2019 at 10:40 AM
facebook X logo linkedin

Analysts this morning waxed optimistic on biotech stocks Xenon Pharmaceuticals Inc (NASDAQ:XENE), TG Therapeutics Inc (NASDAQ:TGTX), and Viking Therapeutics Inc (NASDAQ:VKTX). In fact, the brokerage firms expect shares of XENE, TGTX, and VKTX to more than double on the charts.

XENE Options Attractively Priced

Xenon stock is up 4.7% to trade at $10.08, after Stifel lifted its price target by $3 to $21 -- more than double Thursday's close. The equity has already rallied close to 60% in 2019, supported by its 20-day and 40-day moving averages. Earlier this month, XENE touched a year-to-date high of $10.74, but stalled around a 50% Fibonacci retracement of its retreat from its September highs to its April lows.

Traders wanting to speculate on XENE's short-term momentum should consider options. The equity's Schaeffer's Volatility Index (SVI) of 90% is higher than just 5% of all other readings from the past 12 months, suggesting near-term options are pricing in relatively low volatility expectations at the moment -- translating into attractive premiums.

Short Squeeze Could Boost TGTX Stock

TG Therapeutics shares are up 4% at $7.76. Cantor Fitzgerald this morning started coverage of TGTX with an "overweight" rating and $17 price target -- more than double yesterday's close. The security gapped higher in late February on upbeat data for the company's lymphoma drug, and has already more than doubled since its Dec. 24 low of $3.32. Today, TGTX is attempting to take on its 200-day moving average, which hasn't been defeated on a daily closing basis since early September.

A short squeeze could certainly help the stock extend its upward trajectory. Short interest represents nearly 27% of the security's total available float, or roughly a week's worth of buying power, at TGTX's average pace of trading.

VKTX Upgrade Brings Option Bulls

Viking Therapeutics stock is up 11.3% at $9.43, as traders cheer an upgrade to "outperform" from "market perform" at SVB Leerink. The brokerage firm also more than doubled its price target on VKTX to $21 from $10, waxing optimistic on the pharma company's non-alcoholic fatty liver disease (NASH) drug. While Viking stock has added nearly 21% in 2019, the shares have struggled to stray far beyond the $9 level so far this year.

VKTX options traders today are scrambling for calls. The pharma stock has already seen more than 3,800 calls change hands in the first hour of trading -- four times the average intraday pace. For comparison, fewer than 200 Viking Therapeutics puts have traded thus far. Most active is the May 10 call, with vanilla buyers expecting VKTX to move into double-digit territory within the next several weeks.


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 C3.ai calls
238.5% GAIN on Oracle calls



Rainmaker Ads CGI