What Happened?
Shares of specialty pharmaceutical company Supernus Pharmaceuticals (NASDAQ: SUPN) jumped 4.6% in the morning session after Piper Sandler upgraded the company's stock from a "Neutral" to an "Overweight" rating and raised its price target.
The investment firm increased its price target on the shares to $65 from a previous target of $40. The upgrade was influenced by the promising potential of Onapgo, Supernus's recently launched continuous subcutaneous infusion pump designed for advanced Parkinson's disease. Analysts noted the product's potential to expand profit margins and grow earnings before interest, taxes, depreciation, and amortization (EBITDA), a measure of a company's overall financial performance.
After the initial pop the shares cooled down to $50.26, up 4.7% from previous close.
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What Is The Market Telling Us
Supernus Pharmaceuticals’s shares are not very volatile and have only had 5 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful, although it might not be something that would fundamentally change its perception of the business.
The biggest move we wrote about over the last year was 2 months ago when the stock gained 14.4% on the news that the company posted strong second-quarter earnings that beat expectations and raised its full-year revenue forecast.
The pharmaceutical company reported revenues of $165.5 million, which surpassed analysts' projections, while its earnings per share of $0.40 also beat consensus estimates. Investors reacted positively to the growth in key products, as net sales for Qelbree and GOCOVRI increased by 31% and 16% respectively, compared to the prior year. Bolstering investor confidence, Supernus lifted its full-year revenue guidance, pointing to a strong first-half performance. The company also completed the acquisition of Sage Therapeutics and launched a new device for Parkinson's disease, which further supported the positive sentiment.
Supernus Pharmaceuticals is up 38% since the beginning of the year, and at $50.26 per share, has set a new 52-week high. Investors who bought $1,000 worth of Supernus Pharmaceuticals’s shares 5 years ago would now be looking at an investment worth $2,345.
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