Shares of property-technology company Skyx Platforms (SKYX -4.70%) absolutely skyrocketed on Thursday after the under-the-radar stock got a bold vote of confidence from a prominent analyst. As of 1:30 p.m. ET, shares were up a stunning 78%. The stock has soared roughly 250% over just the past month.
In partnership with General Electric, Skyx Platforms has created a novel way for homeowners to mount ceiling fans. It hopes to make homes safer by limiting potential exposure to wires when changing fixtures. And it also aims to make homes smarter with smart hardware devices and an accompanying mobile platform.
Benchmark analyst Michael Legg initiated coverage of Skyx stock yesterday afternoon with a bold price target of $15 per share, according to The Fly. That's roughly four times its closing price on Wednesday. And apparently that was enough to send the stock rocketing skyward.
Legg expects major upside to where Skyx Platforms shares trade now because of its large market opportunity. However, the analyst's price target is only a hair above the stock's initial public offering (IPO) price. Prior to changing its name to Skyx Platforms in June, Sky Technologies had its IPO in February at $14 per share.
Before getting too excited, prospective investors should remember that Skyx Platforms is still a fairly speculative stock right now. Its future flagship SkyPlug product line hasn't launched yet. However, the company is making progress toward commercialization. It placed its initial order with General Electric on June 1 and hopes to start getting some presales before the end of the year.
It should also be noted that Benchmark was the underwriter of Skyx Platforms' IPO. Therefore, it's not too surprising to see this firm issue a bullish rating now just a few months later.