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Why Ocugen Stock Skyrocketed Today

By Joe Tenebruso - Feb 5, 2021 at 6:56PM

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Analysts are growing more bullish on the biotech's growth prospects.

What happened

Shares of Ocugen (OCGN 10.45%) soared 61.5% on Friday, following positive analyst commentary.

So what 

H.C. Wainwright analyst Swayampakula Ramakanth raised his rating on Ocugen's stock on Thursday from neutral to buy and placed a $4.50 price forecast on its shares. Ramakanth cheered Ocugen's recent deal with India-based vaccine developer Bharat Biotech to potentially bring Covaxin, a COVID-19 vaccine candidate, to the U.S. market. 

Ramakanth posits that Covaxin could induce broader immunity and better protection against new coronavirus strains than the COVID-19 vaccines that have received emergency use authorization in the U.S. He also highlighted Covaxin's potential logistical advantages, due to its less onerous temperature storage requirements. 

A digital bull is climbing a rising stock chart.

Analysts see more upside ahead for Ocugen's shareholders. Image source: Getty Images.

Roth Capital analyst Zegbeh Jallah, meanwhile, believes Ocugen's share price could rise to as high as $8. Jallah applauded the structure of the deal, which gave Ocugen a 45% share of the potential profits from Covaxin's U.S. sales without requiring it to make an upfront payment to Bharat Biotech. Jallah's price target represents potential gains for investors of roughly 52% from Ocugen's closing price on Friday.

Now what

Much of Ocugen's future growth prospects now rest on its ability to obtain emergency use authorization for Covaxin in the U.S. Thus, investors should brace for volatility in Ocugen's stock price as it advances toward clinical trials.

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Ocugen, Inc. Stock Quote
Ocugen, Inc.
$2.22 (10.45%) $0.21

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