Please ensure Javascript is enabled for purposes of website accessibility

Why Inovio Pharmaceuticals Stock Is Soaring Today

By Keith Speights - Feb 12, 2021 at 11:17AM

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

An analyst is really bullish about the biotech stock.

What happened

Shares of Inovio Pharmaceuticals (INO -7.54%) were soaring 19.7% higher as of 11:07 a.m. EST on Friday. The big jump came after Oppenheimer analyst Hartaj Singh initiated coverage on Inovio with an outperform rating. Singh also set a $35 price target for the stock.

So what

It's not a good idea to buy a biotech stock just because a Wall Street analyst likes it. However, it is a good idea to learn why an analyst is so bullish. So why does Oppenheimer's Singh think Inovio could more than double within the next 12 months?

COVID-19 vaccine and syringe on top of a rising stock chart

Image source: Getty Images.

Perhaps most importantly, Singh really likes the potential for Inovio's COVID-19 vaccine candidate INO-4800. He wrote to investors that the experimental vaccine has a "differentiated profile" than other COVID-19 vaccines, especially with regards to its safety and tolerability. Singh believes that Inovio is making good progress toward potentially winning Emergency Use Authorization.

He's also intrigued by Inovio's INO-5401. The biotech is currently evaluating the experimental vaccine in a phase 2 study targeting glioblastoma, an aggressive type of brain cancer. Singh stated that INO-5401 is a "unique cancer vaccine with intriguing early stage efficacy."

The Oppenheimer analyst could be exactly right about Inovio. However, the biotech's pipeline candidates still have several hurdles to jump.  

Now what

While Inovio has several irons in the fire, the most important thing to watch with the company right now is the progress for INO-4800. The COVID-19 vaccine candidate is being evaluated in a phase 2 study. Inovio still must resolve questions raised by the U.S. Food and Drug Administration (FDA) about its Cellectra 2000 delivery device for the vaccine before it will be able to advance INO-4800 into phase 3 testing.

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

Inovio Pharmaceuticals, Inc. Stock Quote
Inovio Pharmaceuticals, Inc.
INO
$1.84 (-7.54%) $0.15

*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.