Shares of TG Therapeutics (TGTX) jumped 5% on Tuesday after Bank of America analyst Alec Stranahan raised his price target on the stock on the heels of the company initiating a mid-stage study of its key drug in treatment-resistant schizophrenia.
Stranahan raised his price target on TG Therapeutics to $20 from $17 but kept an ‘Underperform’ rating on the shares. The new price target represents a potential downside of 66% from the stock's last close.
The analyst said that the company’s second-quarter results will likely center on whether Briumvi continues to beat elevated expectations, with investors focusing on U.S. revenue compared with the company’s $220 million guidance and Wall Street estimates of around $229 million.
Briumvi, the company’s approved treatment for relapsing multiple sclerosis, has been the main driver of revenue growth. The upcoming quarterly report, expected in early August, will provide the latest update on U.S. sales momentum and whether the drug is continuing to exceed forecasts.
Earlier this week, TG Therapeutics announced it has started a mid-stage study testing Briumvi in patients with treatment-resistant schizophrenia. The open-label trial aims to enroll roughly 60 adults who still have significant symptoms despite standard antipsychotic treatment. Patients will receive Briumvi while continuing their current therapy. The main goal is to see how many achieve a meaningful reduction in symptoms after 12 weeks.
CEO Michael Weiss said the study is based on growing evidence that immune system dysfunction may play a role in schizophrenia for some patients, supported by earlier findings with similar treatments.
The company is also developing Briumvi in Myasthenia Gravis.
According to data from Koyfin, seven of the nine analysts covering TGTX rate it Buy or higher, while one rates it Hold and one rates it Strong Sell.
The 12-month average price target on the stock is $51.71, representing a potential upside of about 11% from the stock’s last close.
On Stocktwits, retail sentiment around TGTX stock rose from ‘bearish’ to ‘neutral’ over the past 24 hours, while message volume stayed at ‘low’ levels.
A Stocktwits user voiced hopes for a buyout at a premium for the company.
Another highlighted that given the spirit of mergers and acquisitions within the biotech space, the stock will stay “in this zone.”
A third user dismissed BofA’s take on the stock.
TGTX stock has gained 95% year-to-date.
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