Analyst: This Biopharm Stock Could Barrel Higher

Just two analysts follow Cerecor

Apr 1, 2019 at 11:21 AM
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Maryland-based orphan disease specialist Cerecor Inc (NASDAQ:CERC) has flown under the radar of analysts. At last Friday's close, just one analyst covered the biopharmaceutical stock, maintaining a "strong buy" rating and $9 price target.

Earlier today, though, H.C. Wainwright initiated coverage on CERC stock with a "buy" rating, and $11 price target -- a more than 88% premium to last week's settlement at $5.84. This follows news from early March that Cerecor and H.C. Wainwright entered into an underwriting agreement.

In reaction, CERC shares are trading up 0.5% at $5.87, extending a recent bounce off its 50-day moving average, and pacing for a third straight win. Longer term, the equity surged 80.8% in the first quarter, marking its best quarter performance since the fourth quarter of 2017, when it gained 276.4%.

Amid this rally, short sellers have been ramping up their exposure. Short interest jumped 33.9% in the two most recent reporting periods. However, the 352,919 Cerecor shares sold short represents just 1.1% of the equity's available float, or 2.3 times the average daily pace of trading.

 

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