Sorrento Therapeutics Inc (NASDAQ: SRNE) has recaptured the attention of investors as analysts remain confident in the companies 12 month outlook. The stock has performed well as of late, posting a 29% gain over the past month of trading. Furthermore, the average 12 month price target amongst Wallstreet analysts is $29.67 a share. This suggests an upside potential of 183%. This article will breakdown everything you need to know about Sorrento’s stock forecast for 2021.
Table of contents
Analysts maintain their buy rating on Sorrento stock
Firstly, the sentiment for Sorrento stock amongst Wallstreet analysts is surprisingly bullish. The average 12 month price target across the board of 3 analysts is $29.67 a share. Evidently, analysts can see upside potential in SRNE stock moving into 2021/22. Across the board, all three analysts have listed a Buy rating.
1/21/2021 Alliance Global Partners – analysts initiated coverage at $35 a share. This suggests an upside potential of 245% from the current trading price. Alliance analysts have listed SRNE under a BUY rating.
7/31/2020 HC Wainwright – analysts boosted the 12 month price target from $24 to $30 a share. HC Wainwright maintain their BUY rating.
5/26/2020 Dawson James – analysts initiated coverage at $24 a share, an upside potential of 140%. Dawson James analysts also maintain their current BUY rating.
Sorrento revenue forecasts for the next 12 months
The next 12 months in revenue prospects for SRNE are mixed, with heavy weighting on the success of its pipeline of treatments/testing. The revenue for 2021 is forecasted to hit $1.1 Billion (average estimate from analysts). Furthermore, the fiscal forecast for 2021 ranges between $344.53 million to $3.01 billion according to Zacks. Analyst James Malloy from Alliance Global Partners noted two COVID testing kits (COVI-STIX & COVID-TRACK) which are on track for EUA approval, could provide $500 million in sales each in 2021.
Sorrento boosted its arsenal in 2020 with 11 different COVID treatments and testing kits to be trialed for use. In addition, SRNE has made vast movements in immunology and non-opioid pain killers with many treatments in Phase 2/3.
Sorrento stock forecast – Summary
We remind our viewers that this is not financial advice. Instead, the information above is an investment commentary from extensive research.
In conclusion, it is clear Wallstreet analysts are backing SRNE stock to take off in 2021/22. Evidently, upside potential in 12 month price targets is a promising sign however the stock will need to see a shift in investor sentiment across the board. The possible EUA approval for COVID testing could be the catalyst that SRNE need. However, the large spread in revenue forecasts does suggest some volatility ahead. Especially if SRNE fail to deliver on its promises to deliver COVID testing in H1 2021.
Written by Tyger Fitzpatrick, Founder of Youth Investment Group.
The information above is not financial advice. Youth Investment Group has no liability for personal financial interests or investment decisions. You should make your own investment decisions based upon your own research and what you believe is best for you.
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