3 Pharma Stocks Expected to Double

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

by Andrea Kramer

Published on Mar 29, 2019 at 10:40 AM

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.


a schaeffer's exclusive

PLAY TRENDS LIKE A PRO!

5 tips to leverage profits in this FREE insider report!


 
 

Partnercenter


NEW! Explore Schaeffer’s Partners' deals and get connected to top online brokerages with deals tailored exclusively for our readers.  Get answers to your questions regarding transfer fees, commission rates, programs and available discounts related to online trading services.

MORE | MARKETstories


IRA/401K Investment Guide: 2019 Stock Market Crash
Use gold to protect any IRA, 401(k), or retirement account from a looming financial crisis.
GDP, Nike Earnings Headline Calendar
Dow name Nike is scheduled to report earnings on Thursday
Starbucks Stocks Lands Second Upgrade of the Week
The 200-day moving average has emerged as support
IRA/401K Investment Guide: 2019 Stock Market Crash
Use gold to protect any IRA, 401(k), or retirement account from a looming financial crisis.