Why Ocugen Stock Wilted on Wednesday
Like meme stocks will do from time to time, Ocugen (NASDAQ: OCGN) on Wednesday saw a notable price drop a day after a surge. The company was hit by quite a severe price target cut from an analyst, a move that ruined the party after Tuesday's post-earnings run-up.
Before market open Wednesday, Noble Capital's Robert LeBoyer made a nearly 40% chop to his Ocugen target. He now feels the company is worth only $5 per share, down from his previous estimation of $8. Although he's notably less bullish on the stock's upside, he's nevertheless maintaining his outperform (buy) recommendation.
The reasoning behind LeBoyer's move wasn't immediately apparent. It hardly seems coincidental that it comes just after the biotech released its latest batch of quarterly earnings. The relatively early-stage company didn't book any revenue and more than doubled its net loss on a year-over-year basis. This performance was basically in line with analyst expectations.
Source Fool.com
