H.C. Wainwright just initiated coverage on the drugmaker Rockwell Medical Inc (NASDAQ:RMTI). The brokerage firm started with a "buy" rating and an $11 price target, which is more than double the stock's current levels. The analyst called Rockwell, which specializes in end-stage renal disease treatments, an "emerging biopharma company."
Despite the bull note, RMTI has succumbed to broad market pressure today, down 6.8% at $4.91 at last check. Even with today's drop, the security is still holding atop the $48 region, a long-term level of resistance. Overall, the stock is up nearly 118% this year.
Rockwell Medical has been largely overlooked, with only one "strong buy" rating to its name. The consensus 12-month target price target of $11, however, is at a 124% premium to current levels, and represents an area not touched by the stock since 2015.
Meanwhile, the 7.23 million shares sold short represents a whopping 16.2% of the stocks available float. At RMTI's average pace of trading, it would take over a month to cover all these pessimistic positions, leaving the door open for a short squeeze.