Derma Sciences Inc. (NASDAQ: DSCI) was reiterated as Buy with an $18 price target at Canaccord Genuity on Friday. We checked this one twice, because the shares were at $7.70 on Friday morning. That represents more than 100% upside, if this highly speculative call is correct.
Derma Sciences has a sub-$200 million market cap, placing it in the ultra-speculative category of stocks. The post-earnings call said that the analysts were encouraged by strong growth in Advanced Wound Care and with improved reimbursement rates. Keep in mind that sentiment is nowhere as strong here, as the 52-week range is $7.27 to $13.67. Is this like a Hail Mary pass?
After completing enrollment in its telotristat etiprate trial, Lexicon Pharmaceuticals Inc. (NASDAQ: LXRX) was reiterated as Outperform with a $3 price target at Wedbush Securities on Tuesday. Keep in mind that shares were around $1.11 late on Friday. Does nearly 200% upside sound or feel right here? Lexicon’s 52-week range is $0.80 to $1.86.
New Gold Inc. (NYSEMKT: NGD) was maintained as Outperform at RBC Capital Markets on Thursday. While the price target was cut to $5.50 from $6.50 in the call, the prior close of $3.50 implies upside of roughly 57%. This is a $1.8 billion market cap gold miner with a 52-week range of $3.22 to $6.78. Shares were at $3.51 shortly ahead of Friday’s closing bell.
Jefferies started Oncothyreon Inc. (NASDAQ: ONTY) as a Buy with a $2.50 price target on Thursday. This coverage and target price was versus a $1.68 close, after a post-earnings gain of 6%, on Wednesday. Shares then rallied to close at $1.79 on Thursday, but Friday brought sharp selling and the price was back down to $1.67 late in the day after nearly a 7% drop.
With a 52-week trading range of $1.48 to $3.77, a $1.67 share price does not exactly scream to investors that the market believes 50% upside is coming here. The consensus price target for Oncothyreon is listed as $3.50, but there are only three analysts with ratings. Amazingly, this Jefferies target is the lowest of all three analysts who cover Oncothyreon.
If you want one last reminder about these being risky, most of these stocks are rarely, if ever, covered by 24/7 Wall St.