1 Beaten-Down Stock That Could Soar by 86%, According to Wall Street
Over the past year or more, the market has soured on unprofitable clinical-stage biotech companies, an understandable development. Investors prefer to put their money in stable and established corporations that generate consistent earnings and cash flow when the going gets rough. However, some clinical-stage biotechs remain highly promising.
One of them is Madrigal Pharmaceuticals (NASDAQ: MDGL), a company for which Wall Street has high hopes. Analysts' average price target for the drugmaker currently tops $326, according to Yahoo! Finance, representing an 86% upside from its current share price of about $175. Can Madrigal Pharmaceuticals live up to that potential in the next year?
Madrigal Pharmaceuticals focuses on developing therapies that treat non-alcoholic steatohepatitis (NASH), a condition characterized by a dangerous buildup of fat in the liver that leads to inflammation, scarring, and liver damage. The liver problems NASH causes aren't due to one of the typical causes: alcohol use. That's where it gets part of its name from -- "non-alcoholic."
Source Fool.com
