The shares suffered their worst day in years on Wednesday
Acer Therapeutics Inc (NASDAQ:ACER) plunged 78.6% yesterday -- its worst session since September 2008 -- after the Food and Drug Administration (FDA) failed to approve the firm's rare genetic disorder treatment, requesting new clinical data. ACER shares are lower again today, last seen down 4.6% at $3.93, as bearish analysts blast the crumbling pharma stock.
For starters, Raymond James downgraded ACER stock to "market perform" from "outperform." H.C. Wainwright, meanwhile, slashed its price target to $10 from $55. Plus, LifeSci Capital called Acer Therapeutics a "high-risk investment," and that failure to gain regulatory approval or positive data from the "upcoming bioequivalence study could adversely affect Acer's stock price."
There's certainly room for more downgrades and/or price-target cuts to come through. While three of six analysts maintain a "buy" or better rating on ACER stock -- and not a single "sell" on the books -- the average 12-month price target of $9 is a roughly 128% premium to current trading levels.
Elsewhere on the sentiment front, short sellers have certainly set their sights on an attractive target. Short interest jumped almost 71% in the two most recent reporting periods to 307,617 shares. These bears are sidelined through today's trading, considering ACER stock found a spot on the short-sale restricted list amid yesterday's sell-off.