If an analyst makes bullish noises about a stock then it almost always leads to a rally in the stock due to rising investor confidence and that is what seemed to have happened with the VistaGen Therapeutics (NASDAQ: VTGN) stock on Thursday.
The stock soared by as high as 20% yesterday after Andrew Tsai of Jeffries started covering the stock and rated it as a ‘buy’. More importantly, he set the price target of $6 within a year, which represents a threefold upside from the closing price of the VistaGen stock on Wednesday.
However, it is more important to see why Tsai is bullish about the company. The analyst is particularly hopeful with regards to the company’s nasal spray product PH94B. In this regard, it should also be noted that VistaGen already announced positive data from the Phase 2 study of the product.
PH94B is aimed at treating neurological disorders. While there are risks associated with this stance, it should be noted that Tsai is not the only analyst who is bullish about VistaGen. Investors could consider adding the stock to their watch lists at this point.