Stocks rallied time and time again during the last several weeks. There were drawbacks as well due to negative data over U.S.-China tensions. Despite that, the stock markets are already recovering from the crisis caused by coronavirus pandemic. Authorities are lifting restrictions and reopening businesses.
There are two sides to every coin, and while the global economy suffered severely from the pandemic, most stocks are exceedingly low. Therefore, it’s a good time to renew or build your portfolio. But which stocks to choose?
Experts advise Geron Corporation. This stock belongs to the Tech sector, and while the pandemic caused several drawbacks for it, it still has a good potential to rebound.
Presently Geron is focusing on the development of imetelstat. Geron will probably experience some delays due to the pandemic, but analysts believe it’s a promising piece of technology. Imetelstat is a small molecule telomerase inhibitor active in the treatment of R/R myelofibrosis (MF) and highly transfusion-dependent MDS.
Thomas Shrader, the BTIG analyst, lowered his price target for this stock from $4 to $3, but it still implies a 114% gain for shareholders. It seems Wall Street analysts agree with Shrader. The stock’s average price is $3.50 per share, with 149% upside potential. But the stock is trading $1.36 per share currently. Such a price is quite attractive if you plan to invest in healthcare.
Why is Geron a strong-buy stock?
The company recently announced that it wouldn’t be able to complete enrollment for the Phase 3 IMerge trial by 2020 due to the pandemics’ impact. Shrader thinks that imetelstat’s approval and launch will occur in 2024 instead of 2023 because of this delay.
However, considering the fact that Geron’s patients are desperate for treatment, physicians are highly motivated to find something worth trying. Even though the IMbark trial had a 32% discontinuation rate due to lack of efficacy previously, the latest tests were effective.
Geron is trying to work out the MF trial design currently, hoping to discuss the path for regulation with the FDA in second-quarter. Shrader believes this stock will manage to overcome difficulties and prosper.
