Please ensure Javascript is enabled for purposes of website accessibility

Why Veru Stock Vaulted Higher Today

By Keith Speights – Sep 2, 2021 at 3:44PM

Key Points

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 raised his price target for the stock.

What happened

Shares of Veru (VERU 0.36%) were vaulting 9.8% higher as of 3:29 p.m. EDT on Thursday. The gain came after Jefferies analyst Chris Howerton increased his price target on the stock to $22 from $19.

So what

Investors shouldn't make decisions based solely on analysts' views. However, it's good to understand why an analyst is more bullish about the biotech stock.

A person wearing a coat and tie giving a thumbs up.

Image source: Getty Images.

In this case, Howerton seems to think that the prospects for Veru are better than they've been in the past. The company reported record revenue and gross profit in the second quarter thanks to increased sales of the FC2 internal female condom. 

Veru also has a lot of pipeline activity. It's enrolling patients in a late-stage clinical study evaluating sabizabulin in treating COVID-19 patients at high risk for acute respiratory distress syndrome. A late-stage study of VERU-100 in treating prostate cancer is underway. The company plans to begin phase 2 and 3 testing of sabizabulin in treating breast cancer this year as well.

Now what

The next major catalyst for Veru should be on the way soon. The U.S. Food and Drug Administration (FDA) established a PDUFA date for December 2021 for its decision on approval of Tadfin in benign prostatic hyperplasia (enlargement of the prostate gland).

Keith Speights has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.

Stocks Mentioned

Veru Stock Quote
Veru
VERU
$5.50 (0.36%) $0.02

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

Related Articles

Premium Investing Services

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