Immunomedics Inc. (NASDAQ: IMMU) was given another big upside call this week, with Wells Fargo seeing this biotech potentially doubling. Wells Fargo reiterated an Outperform rating, but the valuation range of $7.00 to $7.50 would be exactly a double-your-money prediction from Friday’s $3.85 closing price, if the firm is proven right. This call was based on a sum-of-parts valuation, price/sales and price/earnings methods applied to 2023 expected revenues of $315 million and earnings per share (EPS) of $1.02 discounted at 12% to 18%. We covered this Wells Fargo call in more detail on Friday, and its gain was almost 7% on that day. Immunomedics has a 52-week range of $3.04 to $5.48. If you want to know if other past calls have been made, Wells Fargo was giving the same target earlier this year when the stock was at $4.71. The consensus price target here is $7.00
Egalet Corp. (NASDAQ: EGLT) was reiterated as Buy at Canaccord Genuity, but what stood out was the $25 price target versus a $9.98 close. The firm thinks that positive intranasal abuse data for its abuse deterrent morphine in the second quarter should move shares higher. Shares closed up 5.5% at $9.66 on Friday, still leaving implied upside of over 150% if this super-aggressive call works out. Keep in mind that the $167 million market cap comes with a history of volatility as the 52-week range is $3.81 to $17.03.
Limelight Networks Inc. (NASDAQ: LLNW) was raised to Buy from Neutral at B. Riley on Friday. The call was after a loss was reported that was narrower than expected. What stood out in the upgrade was that price target was raised to $6.50 from $4.00. The prior close was $3.70, but the stock was up 9% at $4.05 late on Friday and that still left an implied upside of about 60% from the post-report share price.
Marathon Patent Group Inc. (NASDAQ: MARA) was started as Buy with a $12 price target at Roth Capital on Friday. This is a small $80 million company, and volume is generally under 100,000 shares. Marathon is thin in analyst coverage as well, but Northland Securities started coverage with an Outperform rating back in March.
Oclaro Inc. (NASDAQ: OCLR) was raised to Buy from Hold at Needham this past Monday. What stood out here was the news $3.00 price target. The prior close was $1.87, and the closing price was $1.92 on Friday. All in all, this implies upside of more than 50% for the maker of optical components for the communications, industrial and laser markets. The consensus target price is closer to $2.50, and investors should keep in mind that this $210 million market cap stock reports earnings on Tuesday, May 5 — so event-risk exists on top of small-cap stock risk here.
Ocwen Financial Corp. (NYSE: OCN) will feel more like a runner-up here because the stock closed at $10.26 on Friday. The mortgage servicer showed a 43% slide in profits, but shares rallied. Sterne Agee CRT raised its rating to Buy from Neutral with a $12 price target on Friday. This was technically against a prior closing price of $8.47, but the stock opened at $9.64. Trading volume was almost three times normal.
PCTEL Inc. (NASDAQ: PCTI) was raised to Buy from Neutral at B. Riley on Thursday. The existing $11 price target was against a $7.65 prior closing bell price, but shares went out at $7.90 late on Friday, leaving implied upside of 39% if the firm is correct. This has a mere $144 million market cap, and it has traded at less than $10 category for most of the past 10 years.
ServiceSource International Inc. (NASDAQ: SREV) was raised to Market Outperform from Market Perform at JMP Securities on Tuesday. What stood out here was that it was given a $7 price target, and that would be more than 100% upside from the prior $3.37 closing price. Friday’s closing price of $3.62 left implied upside of 93%, if JMP was correct, but the consensus price target is lower at $5.63.
SteadyMed Ltd. (NASDAQ: STDY) was again given an Outperform rating and a fair value range of $14 to $15 in the call at Wells Fargo. The firm’s valuation implies more than 50% upside from the $9.58 price late on Friday. Wells Fargo’s new call included a correction to its prior call, but the firm is mostly assuming Trevyent’s approval in pulmonary arterial hypertension with a large potential market opportunity. Other analyst initiations were even more aggressive than this call in their prior post-IPO coverage.
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