Analysts Expect MYOV, NCNA Stocks to Triple

Myovant Sciences and NuCana scored lofty new price targets

Aug 19, 2019 at 2:33 PM
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The shares of biopharmaceutical concerns Myovant Sciences Ltd (NYSE:MYOV) and NuCana PLC (NASDAQ:NCNA) are higher today, thanks to some optimistic analyst calls. Specifically, SVB Leerink launched coverage of MYOV shares with an "outperform" rating and $26 price target -- more than triple Friday's close of $7. Meanwhile, H.C. Wainwright initiated coverage on NCNA stock with a "buy" rating and $20 price target -- nearly three times Friday's close at $6.95.

MYOV Shares Try to Topple Key Moving Average

Myovant shares are up 10.7% to trade at $7.75, on pace to topple their 20-day moving average for just the second time since April, when MYOV was trading at year-to-date highs. Prior to today's analyst-induced jump, the equity was bouncing around the $7 area, and touched an all-time low of $6.60 on July 30.

MYOV stock chart aug 19

Despite MYOV's struggles of late, today's upbeat analyst attention is nothing new. In fact, all six brokerage firms following the equity maintain "strong buy" opinions. Plus, the consensus 12-month price target already stands at $26 -- representing upside of more than 200% from the security's current perch.

However, some short sellers could be getting nervous during today's rebound. Short interest jumped 23.4% in the most recent reporting period, and now accounts for more than 13% of MYOV's total available float. That's nearly eight sessions' worth of buying power, at the equity's average pace of trading.

NCNA Stock Bounces from Record Low

Nucana stock is up 11.5% to trade at $7.75. The equity touched a record low of $6.80 just last Friday, Aug. 16, and has been in a channel of lower highs and lows since getting rejected around $19 back in March. Since then, the 160-day moving average has emerged as resistance, though this trendline sits way north of NCNA shares right now, at $12.79.

NCNA stock chart aug 19

As with MYOV, NCNA shares have remained an analyst favorite, despite recently exploring all-time lows. All six of the brokerage firms covering the equity deem it worthy of a "buy" or better rating, and the average 12-month price target of $29.75 is nearly four times NCNA's current price.

Short interest accounts for about 8.5% of the security's total available float, or roughly 2.3 million NCNA shares. At NCNA's average daily trading volume, it would take over 100 days to cover these bearish bets. However, considering the drug stock's downward trajectory of late, one may not expect too many shorts to abandon ship until NCNA stages a notable breakout to the upside.


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