This biopharma is expected to grow by 44.3% next year. The shares are heavily shorted, so please don’t pile up too many until the short ratio declines.
ADMA Biologics, Inc. (ADMA)
From Schaeffer’s Investment Research
The shares of biopharmaceutical concern ADMA Biologics, Inc. (ADMA) are higher this afternoon, after analysts at H.C. Wainwright launched coverage with a “buy” rating, waxing optimistic on the company’s Bivigam prospects. Specifically, the analyst thinks the drug—rejected for relaunch by the Food and Drug Administration (FDA) in mid-December—could once again hit the market within the next few months. In addition, the brokerage firm’s price target of $10 represents more than three times ADMA stock’s current price, and stands in territory not charted since 2015.
On Jan. 7, ADMA Biologics said it responded to the FDA’s complete response letter (CRL) on Bivigam, which sent ADMA shares gapping to new lows in late 2018. Specifically, the equity touched an annual low of $2.08 on Dec. 27. Since then, the shares have attempted a rebound, though upside momentum has stalled in the $3.50-$3.60 neighborhood—around half the stock’s Sept. 6 high of $6.96.
Despite the biopharma concern’s struggles on and off the charts, most analysts are already in the bulls’ corner. In fact, all of the analysts covering ADMA maintain “buy” or better opinions, with not a “sell” to be found. Plus, the consensus 12-month price target sits at $10.36, representing expected upside of about 262% from current levels.
On the other hand, the equity remains heavily shorted, with roughly 16% of the stock’s float dedicated to short interest. At ADMA’s average pace of trading, it would take about six sessions to repurchase these pessimistic positions.
Bernie Schaeffer, Schaeffer’s Investment Research, http://www.SchaeffersResearch.com, 800-327-8833, February 7, 2019