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
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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.

 

 

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