Precision medicine specialist Relay Therapeutics (RLAY -1.70%) probably didn't want this holiday-shortened trading week to end, since it was quite the stock market star during the period. According to data compiled by S&P Global Market Intelligence, its share price climbed by almost 15%, thanks in no small part to a bullish new analyst note.
A new bull arrives on the scene
After market hours Wednesday, Guggenheim Securities prognosticator Brad Canino initiated coverage of Relay. He flagged the biotech as a buy with a price target of $15 per share, nearly four times the company's most recent closing share price. Given that sort of potential, it wasn't surprising that Canino bestowed his firm's Best Idea designation on the stock.
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According to reports, the analyst pointed to the company's current late-stage breast cancer trial for its orally administered RLY-2608 as a particularly promising development. He added that the medicine has a clean safety profile and has tested well so far in clinical studies. On top of that, the treatment has potential for treating vascular malformations, an orphan disease frequently afflicting children.
As for the company's financial position, he said that it is currently trading under its cash position, a dynamic that is often irresistible to stock bargain hunters.
Second-quarter improvements
It isn't necessarily hard to be positive about Relay's future. Not only does it have a promising drug late in the development stage, its financial performance has also been encouraging recently. The company earned $677,000 in its second quarter compared to the $0 in the year-ago period and managed to narrow its per-share net loss by almost 41% across that stretch to $0.41.
