Analyst Called This Pharma Stock an "Undervalued Growth Story"

The analyst's rating joins a resoundingly bullish crowd

Deputy Editor
May 3, 2019 at 11:32 AM
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H.C. Wainwright just initiated coverage on the drugmaker Collegium Pharmaceutical, Inc (NASDAQ:COLL) with a "buy" rating and a $23 price target -- a roughly 60% upside to the stock's current perch at $13.60. The analyst called the firm, which specializes in abuse-deterrent pain treatments, an "undervalued growth story," especially given the current backdrop surrounding opioid abuse. 

On the charts, COLL appears to have found a floor right atop its mid-February, 19-month low of $13.10. While the equity has bounced along this region recently, some pressure at its 20-day moving average has caused it to retreat back towards its yearly lows. At last check, the stock was down 19.7% this year.

COLL Chart May 3

Despite this negative price action, analysts are resoundingly optimistic on Collegium. The stock boasts a whopping eight "strong buy" ratings, one "buy" and not a single "hold" or "sell." Plus, the consensus 12-month target price of $28 more than doubles current levels. 

Short sellers have been leaping from their bearish bandwagon, too. COLL short interest fell by over a quarter in the last reporting period. The 2.17 million shares sold short still represent a solid 7.3% of the stock's available float, however, and over six days of trading at the equity's average daily pace. This means there's still plenty of room for a short squeeze. 

 

 

 

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