Coverage from an esteemed Wall Street investment group has caused Jasper Therapeutics to skyrocket, but is it a wise investment to make?
Oct. 14, 2021
Jasper Therapeutics (NASDAQ: JSPR) is a California-based biotechnology company specializing in stem cell therapy. Its products aim to use a blood-based stem cell conditioning agent to help treat a variety of conditions including cancers and autoimmune diseases. It has seen a dramatic rise in its stock price since markets opened on Wednesday. Bullish sentiment from Oppenheimer has the company estimated to outperform the market by a wide margin.
So what does this mean for investors?
Jasper ended the day on Tuesday trading at $8.71 a share. By the time the markets closed yesterday, it had risen by over 105% and closed at $14.79. This dramatic increase can be attributed to the coverage afforded the company by Oppenheimer, as there was no other company-specific news. The bank estimates a target of $21 per share which would far outperform any previous estimates. Oppenheimer sees the company as an “emerging leader” in its field. It has the capacity to transform certain medical procedures, in particular transplants, which have been mired in the same procedures and practices for decades now.
The ‘Outperform’ rating given to Jasper Therapeutics by Oppenheimer should serve as a positive indication to potential investors about the future of the company. However, the stock has shown major volatility following this rating so investors should certainly proceed with caution.
So should I buy Jasper Therapeutics stock?
Jasper Therapeutics made its Wall Street debut in September via SPAC. Despite some extremely positive signs and estimates, it may still be too early to determine whether or not Jasper is a good option to purchase. Its chief product, an antibody named JSP191, is showing high promise but is still in clinical trials. An awful lot will hinge on the type of approval this treatment receives. If it delivers on its promises and performs well throughout the trial period; use in a general population could lead to phenomenal sales numbers.
Until more is known, however, it could be wise to avoid the volatile stock until trading settles or until it achieves full FDA approval.
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