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 twitter 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.


Minimize Risk While Maximizing Profits

There is no options strategy like this one, which consistently minimizes risk while maintaining maximum profits. Perfect for traders looking for ways to control risk, reduce losses, and increase the likelihood of success when trading calls and puts. The Schaeffer’s team has over 41 years of options trading success targeting +100% gains on every trade. Rest assured your losses are effectively limited to your initial cost at the time of making your move! Don't waste another second... join us right now before the next trade is released! 


300x250 - Banner 3 - v1