Wall Street's Counting on an FDA Nod for This Growth Stock to Nearly Double, but Should You?
Thanks to what could be a looming regulatory approval, shares of Lexicon Pharmaceuticals (NASDAQ: LXRX) are soaring, rising by 33% in the last 30 days and 74% over the last 12 months. Wall Street analysts are on average quite bullish, with the average year-ahead price target for the stock currently more than double its current price and with some estimates over the last six months calling for growth in excess of 300%.
But is this biotech actually capable of wowing shareholders with a continuation of such a steep run-up? Let's dive in and analyze what's going on.
Lexicon is a pre-revenue biotech company that's internally developing a trio of molecules that could treat heart failure, type 1 diabetes, and diabetic neuropathy, among a couple of other conditions. With around $106 million in cash and investments, and an operating cash burn of $90.1 million in 2022, it needs to make something big happen soon if it wants to avoid slashing its budget or raising more money. Luckily for investors, such a positive catalyst might be right around the corner.
Source Fool.com
