Shares of MannKind Corporation (NASDAQ: MNKD), a commercial-stage biopharma focused primarily on inhaled insulin, were up as much as 12% in afternoon trading on Tuesday. Shares had risen about 9% as of 3:45 p.m. EST.
Investors can thank Robert Hazlett and Brian Marckx for today's jump.
Hazlett, an analyst at BTIG, initiated coverage on MannKind today and called shares a "buy." He also set a price target of $3, which is more than 150% higher than Monday's closing price. Hazlett told his investors that he believes that Afrezza will continue to grow and could eventually reach more than $350 million in peak sales in the U.S. That's a huge number when compared to MannKind's current market cap of about $250 million.
Marckx, an analyst at Zacks, was even more bullish on the company's near-term potential. He published a report stating that MannKind is worth $4 per share today.
Traders bid up shares in response to the bullish sentiment.
MannKind's most recent results were decent enough. Sales of Afrezza rose 49% to $5.1 million, and revenue from its collaborations totaled $12.4 million. That shrank the company's net loss to $14.9 million.
If MannKind can grow Afrezza so that its peak sales eventually reach $350 million and pull in additional money from partnership payments, its future is certainly looking bright. However, there's still a long road ahead of this company, and it will probably continue to post big losses in the meantime. That's a situation that I want no part of, so I'm content to keep my capital invested in more promising opportunities.