Regeneron Pharmaceuticals Inc (NASDAQ: REGN) hit an all-time high on Tuesday but an Oppenheimer analyst says it might just be the beginning of what’s yet to come.
Ari Wald sees another 15% upside in Regeneron stock
Ari Wald dubs “REGN” his favourite chart in the biotech space and sees another 15% upside in the stock from its current price. Speaking with CNBC’s Kelly Evans on “The Exchange”, he said:
Regeneron Pharmaceuticals is breaking through multi-year resistance going back to 2015. I think you should stick with this strength. The breakout point at $665 is now support, and some of our conservative upside projections point to $800 a share valuation.
A day earlier, the U.S. FDA accepted Regeneron’s Dupixent for priority review. If approved, the medicine will be the first of its kind to be used to treat Eosinophilic Esophagitis in U.S. patients aged 12 and above.
Wald is bullish on the big cap biotech space at large
The head of technical analysis at Oppenheimer is bullish on the big cap biotech space at large that he sees as a suitable pick following inversion of the yield curve. Wald added:
Since 1978, typically when the yield curve is inverted, high momentum tends to outpace low momentum. And the momentum is in the large cap biotech. The S&P biotech industry is above its 200-day average on a relative basis versus S&P for the first time since July 2020.
In February, Regeneron Pharmaceuticals reported its financial results for the fourth quarter that handily topped Wall Street expectations. The stock now trades at a PE multiple of 9.60.
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