Grab MYOV Stock While It's on Sale, Says Goldman

Short interest, on the other hand, has reached an all-time high

Deputy Editor
Aug 28, 2019 at 9:35 AM
facebook twitter linkedin

The shares of U.K.-based biotech Myovant Sciences Ltd (NYSE:MYOV) are popping this morning on a bull note from Goldman Sachs. The analyst initiated coverage on the stock with a "buy" rating, and a $20 price target -- more than double last night's close of $7.86. Goldman said the stock's recent dip provides a good entry point for buyers, and sees promise for the drugmaker's relugolix product. MYOV is up 6% at $8.33 in response, set for its highest close since July. 

Goldman's optimism is nothing new among the brokerage bunch. The security's consensus 12-month price target of $26 represents a level MYOV hasn't traversed in over a year. Plus, all seven analysts in coverage, prior to today, called the pharma stock a "strong buy."

This analyst sentiment seems to be a real case of rooting for the underdog, considering MYOV's 50% year-to-date deficit, and last month's all-time low of $6.60. Since this bottom, however, the equity has managed to tack on 26.2%, with the 30-day moving average acting as support of late. Plus, MYOV is set to finish atop its 60-day moving average for the first time in four months. 

Short sellers have remained interested, though, judging by the 40.2% surge in these pessimistic positions during the last two reporting periods. The 3.02 million shares sold short is a record high for MYOV, and represents 9.7% of the stock's float. What's more, it would take nine days to cover all these bearish bets at the security's average pace of trading.



Bernie's Best Stock Bets for Summer 2021



Special Offers from Schaeffer's Trading Partners