BridgeBio Pharma (BBIO 2.26%) had a good Tuesday on the stock exchange. Following the initiation of coverage by a veteran stock-tracking company, the commercial-stage biotech's share price experienced a nice boost to close the day more than 3% higher. That compared well to the 0.7% gain of the S&P 500 index.
Cantor Fitzgerald is now a BridgeBio Bull
Just after market close on Monday, Cantor Fitzgerald launched its coverage of BridgeBio stock. Happily for the company's investors, the storied financial services company tagged it with an overweight (read: buy) recommendation. It set its price target at $50 per share, which is almost exactly double the stock's current level.
These days, it isn't easy to see vast upside on the company. After all, despite a recent dip in share price, BridgeBio is still one of the best performers in the biotech space, with its shares rising nearly 230% year to date.
The company, which develops treatments for rare diseases, has two products already on the market. In addition, it has no less than 15 pipeline programs, one of which -- muscular dystrophy treatment BBP-418 -- is well into phase 3 clinical testing.
High hopes for the future
At the moment, as with many biotech stocks, belief in BridgeBio is based more on potential than past performance. While the company draws revenue from its commercialized drugs, its costs are high and heavy, which has affected its bottom line accordingly.
Last year, the company lost over $481 million, which, although down from the nearly $563 million deficit of the previous year, was still a deep-in-the-red result.
