Rezolute Inc (NASDAQ:RZLT) stock is making a big move this morning but moving in a wide range. The stock has seen multiple halts on volatility as the stock soared as much as 115% at one point in time. However, the stock is now up by 45% to $11.13 on the very unusual volume of 949K shares within the first 2 hours of the session – well above its 30-day average volume of 20K shares.
So what’s driving the stock crazy? This morning an analyst at Kevin DeGeeter started coverage on the stock and set a price target of $25.
Analyst Kevin DeGeeter commented, “Initiating coverage of RZLT with Outperform rating and $25 PT based on: 1) RZ358 addressing an unmet need for congenital hyperinsulinism (CHI) patients nonresponsive to diazoxide; 2) novel MOA and differentiated tolerability profile driving some diazoxide patients to switch; and 3) broad institutional investor base de-risking access to capital. Our forecast calls for RZ358 launch in 2H24 with 2029 sales of $373.4M.
We view 2H21 top-line data from RZ358 Phase IIb study as an important catalyst and consider 25% improvement to time-in-range as clinically relevant. We do not include economics from RZ402 in our forecast and will revisit assumptions following 1H22 Phase Ib data. DCF valuation assumes terminal year (2029) FCF of $160.1M, 28% discount rate, 10.7 million shares, and 17% long-term growth rate.”
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Anthony Gonzales brings 3 years of experience in helping grassroots, mid-sized organizations and large institutions strengthen their management and resource generating capacities and effectively plan for the future. He is also a mentor and professional advisor to artists working in all disciplines. He is the gold medalist from St. Marco University of Science and Technology in the Bachelors of Financial Management as well.