Investment Bank Initiates Overweight Rating For Biotech Firm
Investment Bank Initiates Overweight Rating For Biotech Firm
Barclays Initiates Coverage On Geron Corporation with Overweight Rating, Announces Price Target of $9.
Disclaimer: The following article is for informational purposes only and should not be construed as financial advice. Any investment carries risk, and readers are encouraged to consult with a financial advisor before making any investment decisions.
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On June 2, 2024, Barclays initiated coverage of Geron Corporation (NasdaqGS:GERN) with an Overweight rating, setting a price target of $9. At the time of this announcement, Geron’s stock was trading at $4.83, indicating a bullish sentiment from Barclays and predicting significant potential upside for investors.
Analyst Price Forecast Suggests 23.12% Upside
The average one-year price target for Geron, as of June 2, 2024, stands at $6.19. This projection stems from a broad range of forecasts, with the lowest target being $4.54 and the highest reaching $10.50. The average price target reflects a potential increase of 23.12% from the most recent closing price of $5.03. Such predictions underscore positive expectations for the company's performance over the coming year. Geron’s projected annual revenue is anticipated to reach $109 million, marking a staggering year-over-year increase of 20,884.62%. The projected non-GAAP earnings per share (EPS) stands at -$0.20, indicating that while revenue growth is substantial, the company may still face profitability challenges.
Institutional interest in Geron has been on the rise, with 386 funds or institutions reporting positions in the company, an increase of 32 owners or 9.04% in the last quarter. The average portfolio weight dedicated to GERN among these funds is 0.19%, which represents an increase of 47.44%. Total shares owned by institutions rose by 12.01% to 450,527K shares over the past three months. The put/call ratio for Geron stands at 0.48, indicating a bullish outlook among investors. A lower put/call ratio typically suggests that more investors are buying calls (bets that the stock will rise) relative to puts (bets that the stock will fall), further reinforcing positive sentiment toward the company’s future performance.
Ra Capital Management holds a significant position in Geron with 46,202K shares, representing 7.79% ownership of the company. There was no change in their holdings over the last quarter, suggesting a steady confidence in Geron’s long-term prospects.
Deep Track Capital
Deep Track Capital has increased its holdings by 3.02% in the last quarter, now holding 30,506K shares, which equates to 5.14% ownership. The firm also boosted its portfolio allocation in GERN by 38.33%, reflecting strong optimism about Geron's potential.
Vivo Capital: Vivo Capital reports owning 27,225K shares, representing 4.59% ownership of Geron. This is an increase of 11.32% from their previous filing, illustrating growing confidence in Geron's future. Vivo Capital's portfolio allocation in GERN surged by 69.26% over the last quarter.
The SPDR S&P Biotech ETF, commonly known as XBI, holds 20,089K shares of Geron, representing 3.39% ownership. This marks a notable increase of 25.87% in their holdings compared to the prior quarter. XBI also increased its portfolio allocation in GERN by 95.27%, signaling a robust bullish stance towards the company. TCG Crossover Management’s holdings stand at 17,392K shares, equivalent to 2.93% ownership of Geron. This marks a decrease of 34.41% from their previous report, suggesting a more conservative approach. Despite this reduction, TCG's continued significant holdings indicate ongoing belief in Geron's potential. Geron Corporation is a late-stage clinical biopharmaceutical company that focuses on developing and potentially commercializing first-in-class telomerase inhibitors. The company's lead product candidate, imetelstat, targets hematologic myeloid malignancies. Currently, Geron is conducting two Phase 3 clinical trials:
IMerge: This trial is focused on lower-risk myelodysplastic syndromes.
IMpactMF: This trial targets refractory myelofibrosis.
These clinical trials are critical for Geron, as successful results could pave the way for regulatory approval and commercialization, potentially transforming the company’s financial landscape. Barclays' initiation of coverage with an Overweight rating and a price target of $9 underscores a strong vote of confidence in Geron Corporation. The company's focus on advancing promising clinical trials, coupled with rising institutional interest and a significant upside potential identified by analysts, paints an optimistic picture for the near future.
Investors considering Geron must weigh the risks associated with biotechnology investments, particularly those in late-stage clinical trials, against the substantial growth potential highlighted by current forecasts and institutional sentiments.
Disclaimer: The above article is intended for informational purposes only and should not be taken as financial advice. Investing in stocks involves risks, and it's crucial to conduct thorough research and consult with a financial advisor before making any investment decisions.
As an investor it's important to stay updated with major news. Get real-time stock market alerts, news, and research by creating an account here.