Please ensure Javascript is enabled for purposes of website accessibility

Why iBio Stock Soared Today

By Joe Tenebruso - Updated Jan 22, 2021 at 2:13PM

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

One analyst says investors are underappreciating the biotech's growth prospects.

What happened

Shares of iBio (IBIO -2.77%) surged on Friday following positive analyst commentary. As of 1:35 p.m. EDT, the biologics manufacturer's stock was up more than 14%. 

So what

Cantor Fitzgerald analyst Kristen Kluska placed an overweight rating on iBio's stock after the market close on Thursday. She sees the biotech's shares rising roughly 80% from their current price near $1.66, to $3.

A person is pointing to an upwardly sloping chart.

iBio's shareholders could enjoy handsome gains, according to an analyst at Cantor Fitzgerald. Image source: Getty Images.

Kluska says iBio's stock is largely under the radar of most investors and that its current price fails to reflect the company's position as a leader in plant-based biologics manufacturing. 

Now what

iBio's FastPharming system uses plants to produce proteins used in biological vaccines and medicines. It's a fast process (projects can go from gene sequencing to protein production in just three weeks) that allows therapeutics producers to rapidly and cost-effectively scale production. 

Due in part to these benefits, iBio has signed manufacturing agreements with several biopharmaceutical companies in recent months. If it can continue to strike more deals (and the company's latest contract wins suggest it will), its stock price could quickly rise toward Kluska's $3 target.

Invest Smarter with The Motley Fool

Join Over 1 Million Premium Members Receiving…

  • New Stock Picks Each Month
  • Detailed Analysis of Companies
  • Model Portfolios
  • Live Streaming During Market Hours
  • And Much More
Get Started Now

Stocks Mentioned

iBio, Inc. Stock Quote
iBio, Inc.
IBIO
$0.24 (-2.77%) $0.01

*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.

Related Articles

Motley Fool Returns

Motley Fool Stock Advisor

Market-beating stocks from our award-winning service.

Stock Advisor Returns
349%
 
S&P 500 Returns
122%

Calculated by average return of all stock recommendations since inception of the Stock Advisor service in February of 2002. Returns as of 05/18/2022.

Discounted offers are only available to new members. Stock Advisor list price is $199 per year.

Premium Investing Services

Invest better with The Motley Fool. Get stock recommendations, portfolio guidance, and more from The Motley Fool's premium services.