Health and Healthcare
Can Geron Shares Still Ultimately Double?
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Many investors are enthralled with stocks that have massive upside potential. It turns out that many of the companies that are said can double are in the biotech sector, and to say that most of them are risky would be the understatement of the year. One such issue would be in shares of Geron Corp. (NASDAQ: GERN). A research report from Janney’s Roy Buchanan issued on Friday included a $6.50 fair value estimate for the stock — more than 100% above the $2.70 share price of the time.
Before investors get overly excited here, it is important to understand that this was an updated call, and it is the same target that the firm had on February 26. This was also the same target as when the coverage was started back on December 16, 2016, when shares were closer to $4.50 at that time.
24/7 Wall St. would remind readers that Geron is a company that has had many great hopes and promises through time. Going back over a decade, those hopes and ambitions have been met with disappointment. The company is not forecast to have any significant revenues until 2017.
Another consideration is that the discounted cash flow estimates are based on financial projections out to the year 2027. Again, high risk. There is also the warning in this note that the catalysts are not necessarily coming any time soon.
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