What happened
One very big stock market winner on Wednesday was Checkpoint Therapeutics (CKPT 0.35%). Shares of the company zoomed 19% higher after glowing coverage on its stock was initiated by an analyst.
So what
B. Riley Securities prognosticator Justin Walsh is bullish on Checkpoint. Actually, that's understating the case considerably. Walsh is so hot on Checkpoint's prospects, he's initiating his coverage with a buy rating and an $18 per-share price target -- which was nearly seven times Tuesday's closing stock price.
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Checkpoint is a clinical-stage biotech specializing in immunotherapy solutions for solid tumor cancers. It has one pipeline drug, cosibelimab, that targets certain recurrent or metastatic cancers. Another, CK-101, is intended for the treatment of non-small cell lung cancer. Both are currently in phase 1 clinical trials.
In a research note published on Wednesday, Walsh pointed out that his estimate of the company's revenue and cash flow growth through 2028 shows that the stock could increase by around 600%.
Cosibelimab could have a very bright future; Walsh wrote that comparable therapies "achieved [over] $15 billion in sales in 2020 in the U.S. alone, and we conservatively estimate that cosibelimab could achieve $1.3 billion in peak risk-unadjusted net sales (U.S., European Union, and U.K.)."
Now what
With its tight focus on cancer immunotherapy, Checkpoint operates in a hot area of biotech just now. And with this glowing research note, it's going to be on the radar of many investors, and therefore a high-potential stock certainly worth watching.
