Shares of Acasti Pharma (NASDAQ:ACST) are jumping more than 25% higher today after a major investment firm initiated coverage. ACST stock has declined by more than 50% year to date (YTD), vastly trailing the S&P 500’s return of 26%.
Today, Oppenheimer initiated coverage on ACST stock with an “outperform” rating and a price target of $6. Even after today’s significant price increase, the price target still represents upside of approximately 300%.
So, why exactly is Oppenheimer so bullish on ACST?
What Happened With ACST Stock?
Oppenheimer analyst Leland Gershell praised Acasti’s merger with Grace Therapeutics earlier this year, citing that the acquisition brings Acasti “a diversified, late-stage, orphan drug pipeline and bench strength.” Furthermore, Gershell is happy about the company’s focus on the development of medicines for rare conditions. The analyst is bullish on its current drug candidates, adding that they “may offer meaningful advantages over standard-of-care while mitigating development risk and cost.”
Looking forward, Gershell has high hopes for Acasti’s GTX-104 and GTX-102 candidates to be accepted into Phase 3 trials. GTX-104 seeks to treat subarachnoid hemorrhages, while GTX-102 seeks to treat ataxia-telangiectasia.
In recent Acasti news, the company’s GTX-104 drug candidate met all primary endpoints in an interim look at the study. The GTX-104 drug was developed in the form of an IV infusion and is a version of nimodipine. Nimodipine is currently the “standard of care” for subarachnoid hemorrhages. No serious adverse side effects were observed from the study, although headaches were reported as a mild adverse side effect. The study’s final results are expected to be reported sometime in the first half of 2022. Additionally, Acasti plans on beginning the Phase 3 Safety Study sometime in the second half of 2022.
Now that we know that Oppenheimer is bullish on ACST stock, let’s take a look at other analysts’ price targets.
Acasti Pharma Price Predictions
- HC Wainwright & Co. has a price target of $3.
- B. Riley has a price target of 50 cents.
- Aegis Capital has a price target of 25 cents.
- It’s useful to note that the above three price targets were all made in 2020. Investors should keep an eye out for any future price target updates.
On the date of publication, Eddie Pan did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.