Analyst Sees 72% Upside in Cara Therapeutics Inc (NASDAQ:CARA)


A solid revision in its price target by analysts at Piper Jaffray galvanized Cara Therapeutics Inc (NASDAQ:CARA) higher in Wednesday’s trading.

The stock jumped 20.08% to close the day at $12.20 on volume of 5.59 million shares.

In our previous articles on Cara we had highlighted its trend reversal from an inverted head and shoulders pattern, as well as its subsequent penetration of the 20-day, 50-day and 200-day moving averages.

Technically, the stock’s recent ascent from the $6 level has been marked by high volumes. Also encouraging is the ease with which the previous high of October 6 has been taken out – with just one test.

On the weekly chart the stock has also penetrated the falling trendline in effect from August 2015.

Piper Jaffray have a bullish price target on Cara Therapeutics Inc (NASDAQ:CARA)

Analysts at Piper Jaffray have moved up their price target on Cara from $16 to $21, reiterating their Overweight rating on the stock.

The new target price means a potential upside of 72% from yesterday’s close.

Piper Jaffray analyst Charles Duncan revised the target after his meetings with management and his own ongoing analysis.

“Cara not only has a differentiated, broadly applicable pipeline in a product for pain and itch, but has thoughtfully designed current studies to maximize signal in what can be noisy indications,” said Duncan. “After what has been mostly an execution year in 2016, we expect these design choices to pay off with positive top-line results and interim updates in 1H17 in advance of potentially transformational clinical progress for Cara from three near-term shots on the KOR goal”.

Cara Therapeutics Inc (NASDAQ:CARA)

Cara’s chart is already shaping up for further upside, and investors may be licking their chops at the prospect of the company cleaning up on these trials.

“2017 will be an exciting and transformative year for the Company as we look forward to sharing top-line data from all three of our late-stage clinical programs,” said Derek Chalmers, President and Chief Executive Officer on the last earnings release.


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