Q2 STOCKS TO BUY

Analysts: These Healthcare Stocks Could Soar 50%

ALDR and DCPH stocks both scored new 'buy' ratings and lofty price targets

Aug 7, 2018 at 1:51 PM
facebook X logo linkedin


Alder Biopharmaceuticals Inc (NASDAQ:ALDR) will step into the earnings confessional after the close today. Ahead of the event, analysts at Stifel launched coverage with a "buy" rating and a $30 price target -- a premium of more than 50% to Monday's close at $19.20. Likewise, sector peer Deciphera Pharmaceuticals Inc (NASDAQ:DCPH) also scored a new "buy" rating, with Canaccord Genuity issuing a price target of $55 -- again, more than 50% above yesterday's close of $35.96.

Short Squeeze Could Push ALDR Stock Above Round-Number Resistance

Alder Biopharmaceuticals stock touched an annual high of $20 today, but has since pulled back 0.3% to trade at $19.15. The round-number $20 level previously acted as support for ALDR shares in early 2017, before switching to resistance. It's also home to a trendline connecting the stock's higher highs since January. Since the security's March lows -- stemming from an abrupt CEO departure -- Alder stock has surged 76%.

ALDR stock chart august 7

The shares jumped 5% the day after the company's May earnings report, and another strong earnings showing -- or a well-received presentation at Canaccord's healthcare conference later this week -- could spook some shorts. Short interest represents more than 20% of ALDR's total available float, and would take more than 12 sessions to buy back, at the stock's average pace of trading -- plenty of fuel for a potential short squeeze.

DCPH Stock Bounces from Key Level

Deciphera Pharmaceuticals stock is up 0.5% at $37.23, thanks to the new Canaccord rating and price target. The analyst waxed optimistic on the company's lead drug candidate, DCC-2618 -- data which sent DCPH shares soaring in early June. The company is also expected to present at the Canaccord Genuity Growth Conference this week.

Since peaking at an all-time high of $45.61 on June 18, DCPH stock has pulled back 18%. However, the stock found support in the $34 region, which is double its September 2017 initial public offering (IPO) price of $17, and represents a 59% gain year-to-date.

DCPH stock chart august 7

However, the healthcare stock is no stranger to upbeat analyst attention. In fact, seven of eight analysts already consider DCPH a "buy" or better, with the other doling out a lukewarm "hold" rating. In the same vein, the consensus 12-month price target of $56.43 represents expected upside of 51.5% to the equity's current perch, and stands in uncharted territory.

 
 

“Buy This Stock Now!” - Expert Who Called 11x On TSLA

He called a rare 11x on Tesla…

But now, thanks to Elon & Trump’s new alliance…

He says there’s a new opportunity that could be 1,000x BIGGER than Tesla – and it could completely revolutionize a $23 Trillion market.

It’s trading for less than $5 per share right now…

But it won’t be under the radar for long.

Discover The 1,000x Bigger Elon Opportunity Here

GRAND SLAM COUNTDOWN

 
 

Featured Articles from Trusted Partners:

👀Learn How Dividends Create Passive Income for Life
Receive $200 Off Motley Fool Epic. The Motley Fool Epic $299 discounted offer is based on $499/year list price. Introductory promotion for new members only. Take control of your money and your portfolio with Motley Fool Epic.

💵New Income System Could Pay You $4,243 Monthly
You could collect an average of $4,243 per month starting as early as next week with a new payout system for income investors. New registrations are being accepted for investors who want to be in a position to start with their first payout next week.

🚀Easy 92% Crypto Dividends (No Coins Required)
COIN stock doesn't pay a dividend... But there's actually a new way to collect a massive dividend that's indirectly based on the stock and offers a terrific monthly income (currently yielding nearly 92% on a forward basis).

🤝Free Advisor Match with Wiseradvisor.com
Don't leave your retirement to chance! Get matched with a trusted financial expert for FREE and make the most of your tax refund. Get started now.

⚠️Dennis Quaid's #1 Warning for Americans
Here's the thing: life doesn't come with guarantees. The economy shifts, markets stumble, and years of hard work could slip through your fingers like sand. But it doesn't have to be that way for you. So request a free copy of this Gold & Silver Guide that will arrive right to your doorstep when you act now.

 

 
 

Follow us on X, Follow us on Twitter