There’s value in many pharmaceutical companies with the Trump Administration seeking to lower drug prices. Vanda Pharmaceuticals is one such company with explosive upside potential.

Citi analyst Joel Beatty upgraded Vanda Pharmaceuticals to Buy from Neutral with an unchanged price target of $19. Mr. Beatty says that the current stock price is undervaluing Vanda’s profitable base business due to very poor investor sentiment related to pipeline agent tradipitant. Beatty sees limited downside to buying the stock now, with potential for a “simple course change on tradipitant to lead to immediate and significant upside.” Either starting an animal toxicity study or discontinuing tradipitant development completely would add $4 per share, estimates Beatty.

Fair value of the stock is at $18.67. The Supertrend indicator has given a buy signal today. The Twiggs Money has formed a positive divergence to price.

The Revenue has been growing by 31.5% on average over the past 5 years. This is a very strong growth!

Vanda Pharmaceuticals does not meet the stringent requirements for inclusion in the GST Portfolio but some may be able to book explosive gains for a swing trade setup.

Disclosure: I do not hold any position in VNDA stock.

Vanda Pharmaceuticals News