Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.
What: Shares in OvaScience (NASDAQ:OVAS) vaulted higher by 12.55% today after Wall Street analysts came to its defense after a sharp sell-off this past week.
So What: After surging to new highs ahead of a key industry conference last month, OvaScience shares toppled by 41.7% this past week.
The share slide resulted in a wave of analysts reiterating their buy recommendations over the past two days, including positive comments from Oppenheimer earlier today.
Oppenheimer analysts defended the company after digging through data that was presented to investors during the Society for Reproductive Investigation conference held between March 25th and March 28th.
That data suggests that OvaSciences' Augment fertility approach delivers better in vitro pregnancy success rates than traditional in vitro success rates.
OvaSciences' Augment approach uses mitochondria from a patient's own precursor eggs, rather than donor mitochondria, to improve egg health. Last year, Augment was rolled out on a trial basis in certain overseas markets, and this year, Augment is being offered commercially at various centers internationally.
Now What: The market for in vitro procedures is ready for innovation. Procedures can be costly and often don't succeed. As a result, it will be intriguing to see whether or not OvaScience can capture enough market share overseas to justify its market cap and prove those who sold its shares wrong.
Investors should get additional insight into the commercial opportunity for OvaSciences' Augment as the year progresses, but given that Oppenheimer reiterated its $60 price target for the company, it appears that they think that there's a good shot that demand for Augment will be high. Whether or not OvaScience trades up to Oppenheimer's price target is uncertain, but given the size of the potential market and the need for new solutions, this may be one that investors want to keep on their watch list.
Todd Campbell owns shares of OvaScience. Todd owns E.B. Capital Markets, LLC. E.B. Capital's clients may or may not have positions in the companies mentioned. The Motley Fool has no position in any of the stocks mentioned. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.