The global equities markets are back in full swing on Wednesday – here are a couple of stocks to keep an eye on.
Sarepta Therapeutics, Inc. (SRPT)
First up is biotech company Sarepta Therapeutics. We highlighted this company as one to watch last week, when management announced it intended to submit a new drug application for its lead candidate Eteplirsen, an immunotherapy treatment targeting Duchenne muscular dystrophy.
Since then, then stock has risen close to 40%, and an announcement today suggests there is still plenty of upside. The company announced that the FDA is actively encouraging it to seek accelerated approval for Eteplirsen, which means it could be approved based on intermediary testing endpoints, and be available for marketing before the end of the year.
With the stock trading at all time highs, there is no clear technical target on offer. Assuming however, that the company gains access to the multi billion dollar market its lead candidate affords, a $2B market cap (currently $1.47B) would not be out of the question. Based on approximately 37M shares outstanding, this would value the company’s stock somewhere around $54-56 per share, making this level an initial upside target.
EMC Corporation (EMC)
Next up is data storage company EMC Corporation. Earnings season is well under way in the US, and EMC is the latest company to reveal its current standing. The company beat consensus revenues estimates, reported at $5.48B versus forecast of $5.2B. While an EPS miss may put pressure on the stock initially (it is down 2% pre US open), as the markets digest its report and see that data storage is at an all time high and a number of key revenue drivers are in the pipeline, the stock should recover and more.
Look for an initial target of Tuesday highs at 27.20, and beyond that, monthly highs at 27.90.
To contact the reporter of this story: Samuel Rae at Samuel@forexminute.com