Helius Medical (NASDAQ:HSDT) stock is soaring higher on Tuesday after Roth Capital analyst Jonathan Aschoff initiated coverage on shares.
That new coverage from the Roth analyst comes with a “buy” rating for HSDT stock. That’s positive news, considering that Helius Medical doesn’t have much coverage from other analysts.
Investors in HSDT stock will also note Aschoff’s price target of $5 per share. That’s incredibly bullish compared to the company’s closing price of 55 cents on Monday. The consensus price target for HSDT sits at $12.50, per MarketBeat.
Why Is Roth Bullish on HSDT Stock?
Aschoff points to the company’s Portable Neuromodulation Stimulator as a catalyst. This is a non-surgical device that sends small electrical impulses to the tongue. This helps patients suffering from multiple sclerosis or a traumatic brain injury to “improve gait and balance,” according to Seeking Alpha.
There’s more to the rise in HSDT stock than just the new analyst coverage, however. Shares are also seeing amazingly high trading volume today with some 43 million having changed hands. To put that in perspective, the company’s daily average trading volume is about 3.5 million shares.
It’s worth noting that this increase in trading volume could be linked to a short squeeze for HSDT stock. That would make sense as it’s a penny stock and the upgrade alone may not explain the surge.
HSDT stock is up 16% as of Tuesday afternoon.
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On the date of publication, William White did not hold (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.
