Gossamer Bio Inc (NASDAQ: GOSS) is in the green on Thursday after a Goldman Sachs analyst said the stock is ready for another huge move to the upside.
On Thursday, Paul Choi assumed coverage of this “under the radar” biopharmaceutical firm with a “buy” rating and announced a price objective of $22; suggesting the stock could rally up to 70% from here.
His bullish view on Gossamer Bio is predicated primarily on “Seralutinib” – its candidate drug for Pulmonary Arterial Hypertension that’s currently in mid-stage trial.
Should the TORREY data prove to be positive as we expect, we’d anticipate increased strategic interest in Gossamer Bio stock given the attractive market opportunity within PAH and the opportunity to leverage the asset.
That medical condition is known to be fatal if left untreated.
Other than that, Choi also likes this biopharma stock for its Bruton’s tyrosine kinase (BTK) inhibitors that look promising for certain types of Lymphoma and Sclerosis. The analyst wrote:
We are broadly bullish on Gossamer Bio’s pipeline and view the risk-reward profile at current levels as favourable.
That’s when the stock has already more than doubled since its bottom in June of 2022 versus only a 2.0% gain in “healthcare” as a sector at large.
Gossamer Bio is expected to report its Q3 results in mid-November. Consensus is for it to lose 66 cents a share this quarter versus 80 cents a share a year ago.
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