Our Stock of the Week is Catalyst Pharmaceuticals (CPRX). CPRX is a commercial-stage biopharma focused on medicines for rare diseases. In July, the stock increased sharply when Catalyst announced that it settled patent infringement litigation for a Ruzurgi to treat LEMS in pediatric patients.
CPRX saw revenues jump 59% in the third quarter and eps increase 86% to $0.26. It is currently estimated that eps will grow an additional 21% in 2023.
The company has a strong balance sheet and over $250 million, or $2.40 per share, in cash which could be used for an acquisition.
Following its third-quarter report, both Wainwright and Piper reiterated their buy ratings on the stock and set a target price of $18.
Technically, the stock has a cup-with-handle pattern and is forming a handle. A move over the closing high of $15.52 should trigger some breakout buyers.
As always, we would not chase the strength to start the week but will look to aggressively trade the stock as it develops.
This post is for educational purposes only! This is not advice or a recommendation. We do not give investment advice. Do not act on this post. Do not buy, sell, or trade the stocks mentioned herein. We WILL actively trade this stock differently than discussed herein. We will sell into strength and will buy or sell at any time for any reason. We will actively trade into any unusual activity. At the time of this post, principals, employees, and affiliates of Shark Investing, Inc. and/or principals, clients, employees, and affiliates of Hammerhead Financial Strategies, LLC, directly or indirectly, controlled investment and/or trading accounts containing positions in CPRX. To accommodate the objectives of these investing and/or trading accounts, the trading in these shares will be contrary to and/or inconsistent with the information contained in this posting.