It’s usually good news when an analyst offers an upgrade on a stock. Just ask biotech stock Arrowhead Pharmaceuticals (NASDAQ:ARWR). Arrowhead saw shares go up nearly 9% in Wednesday’s trading. It’s all largely thanks to new word from SVB Securities, who finds a lot to like about Arrowhead’s future potential.
The word came via SVB Securities analyst Mani Foroohar, who noted that Arrowhead has already taken its share of abuse over the last year. It’s down about 35% against this time last year, and it’s lagging behind a lot of its competitors in the field. However, that same slump gives Arrowhead a nicely reduced price tag and also sets up what Foroohar thinks of as a risk-reward setup that should reward investors.
In response to this new proposition, Foroohar not only upgraded the company’s rating from “market perform” to “outperform,” but he also hiked the price target on the stock from $21 to $35 per share. In a noteworthy coincidence, Exchange Traded Concepts LLC hiked its own stake in Arrowhead substantially, adding an extra 20.7% to its holding.
Indeed, there’s ample analyst support for Arrowhead. Currently, analyst consensus calls it a Strong Buy, with Buy ratings outweighing Hold ratings by four to one. Furthermore, Arrowhead’s average price target of $52.67 implies 84.45% upside potential.
