Palatin Technologies, Inc. (NYSEAMERICAN: PTN) stock price surged 33.7% premarket despite not making any official announcements today. Today’s rally extended the rally in PTN stock for the third day as investors bought its shares.
One of the main reasons behind the latest rally could be the recent coverage of the stock from H.C. Wainright analyst Joseph Pantginis who reiterated a buy rating on the stock and raised his price target from $2 to $5.
The average analyst price target of 45 represents significant potential for Palatin, whose share price is currently trading below $1.
Looking at the company’s fundamentals, we find that it had a meeting with the US Food & Drug Administration (FDA) to outline the phase 3 study of its dry eye treatment and is set to start the trial later this quarter.
Investors also flocked to the company since it is also developing a treatment for COVID-19 based on the positive results from preclinical tests on multiple inflammatory disease models and a lung injury model.
The treatment known as PL8177 demonstrated its ability to protect lung tissue, reduce inflammation, and reduce lung fibrosis.
Palatin has also benefitted from investor preference for stocks that could benefit from the latest COVID-19 variant, which increases the need for a cure for the disease that has caused a global pandemic and significant lockdowns.
However, it remains to be seen whether the latest rally shall last for long since it has formed a parabolic shape, usually followed by a significant pullback.
Investors should not chase the company’s stock higher as there might be better opportunities later when the inevitable pullback occurs. However, nothing is guaranteed in the markets.
*This is not investment advice. Always do your due diligence before making investment decisions.
Palatin Technologies share price.
Palatin Technologies stock price surged 33.68% to trade at $0.7454, rising from Friday’s closing price of $0.5576.
Healthcare stocks, including Palatin Technologies shares, saw a wave of investors buy their shares during the pandemic. Governments also pumped money into the companies in an attempt to speed up the vaccine process. But, what happens now vaccines have been approved and the pandemic is becoming less prominent? Should we still invest in coronavirus-focused healthcare stocks? Or should we look to firms tackling other areas? Here are the best healthcare stocks to buy now…
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