Mannkind shares gained 6.33% to close at $5.54 on Wednesday, and since May 12, they have gained 50%. Shares are flying high after the company met first quarter consensus estimates. So far, shares have recently hit a high of $5.55, representing the highest level since they have made in 11 consecutive highs between $5.44 and $5.70 in mid-March. There are many who believe the stock is on its second extended run, taking it from the mid-$3’s to the $5 level.
Goldman to blame for the fall, Jefferies for revival
However, a few months the case was different. Previously a harsh report from Goldman Sachs talking mainly about the company’s inhaled insulin known as Afrezza negatively impacted the company’s shares. The report noted that Afrezza sales are below expectations, and the firm thereby downgraded the stock and cut its target price. But the analysts comfortably ignored the fact that Afrezza is comparatively a new product and made a “soft launch.”
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Thereafter, shares quickly rebounded when Jefferies highlighted data from a recent survey in a report last month. It read that 65% of 50 endocrinologists covered said that they are aware of Afrezza and also plan to use the inhaled insulin to treat patients more in the future. Hence, the data strongly suggested that Afrezza is seriously being considered by professionals in the medical industry and has a promising future.
Mannkind expected to perform well
In the short term, Mannkind is expected to rack in more growth, with Jefferies’ survey data encouraging bulls. There is bullish sentiment on the stock, and any downside risk is not in sight. In the long term also, the stock is expected to go into an uptrend with Afrezza turning out to be a profitable product, not only for inhaled insulin but for the technology used to deliver insulin through inhaled powder. At present, Mannkind is working to learn if other medicines can also be administered to patients in the same way. Also Mannkind addressed one of the biggest management concerns by appointing a highly reputed member to its board.
Also on Wednesday, analysts at Vetr upgraded MannKind to Hold from Sell with a price target of $4.69. Presently, MannKind has a consensus rating of Hold and an average price target of $6.89. Year to date, the stock is up by over 3%.