Bearish Analysts Bombard Battered Pharma Stock

LifeSci Capital called ACER a "high-risk investment"

by Karee Venema

Published on Jun 26, 2019 at 9:52 AM

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.


a schaeffer's exclusive

5 NEW STOCK PICKS

We're celebrating 38 years with 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


What's Next for the American Wealth Gap
Porter Stansberry is predicting a major change in the American economic system.
Nike Stock Named "Best Idea" at Guggenheim
Nike has struggled since an unsuccessful test of $90 in mid-July
Analysts Cheer Another Strong Quarter for Intuit
INTU shares already hit an all-time high
IRA/401K Investment Guide: 2019 Stock Market Crash
Use gold to protect any IRA, 401(k), or retirement account from a looming financial crisis.