Bellus Health announced positive mid-stage study results for its cough therapy candidate
The shares of Bellus Health Inc (NASDAQ:BLU) are soaring today, up 63% to trade at $9.13 at last check, after the Canada-based drug name announced positive results from a mid-stage study of its cough therapy drug candidate, BLU-5937. In response, Evercore ISI and BTIG lifted their price targets to $20 and $18, from $12 and $13, respectively.
Today's bull gap had BLU trading at a fresh annual high of $9.39 earlier, and back above the 30-day moving average, which has acted as both support and resistance this year. The shares have been climbing since their July 2020 bear gap, but have yet to fully recover from that loss. Year-to-date, the equity is up 189.1%.
Analysts are overwhelmingly bullish towards Bellus Health stock, with all seven in coverage carrying a "buy" or better rating. Plus, the 12-month consensus price target of $11.38 is a 27.9% premium to current levels.
Options traders are targeting BLU with fervor this morning, with options volume running at 18 times the intraday average, and pacing for the top percentile of its annual range. So far, 26,000 calls and 22,000 puts have crossed the tape. The December 10 call is the most popular, followed by the 7.50 put in the same monthly series, with new positions opening at the latter.