Why Wall Street Thinks Sorrento Therapeutics Could Jump by 827%

Sorrento Therapeutics (NASDAQ: SRNE) was the subject of an impressive jump in late-November, with shares almost doubling over the weekend between Nov. 22 and Nov. 24. The trigger for this sudden surge came when Sorrento announced it received two unexpected all-cash buyout offers from different companies over the weekend, with Sorrento choosing to reject them both.

Both of the offers in question valued Sorrento at a significant premium. The first offer at $3 per share would mean an 88% premium on Sorrento's closing price on Nov. 22, while the other offer, at $5 per share, comes out to a massive 213% premium. Although the names of these companies weren't disclosed, the news was more than enough to send the stock surging. However, analysts covering the stock seem to think that these offers are far too cheap, with one major analyst suggesting that the company is worth a 670% premium at least. Overall, the average price target of all analysts on Wall Street actively covering the stock suggests Sorrento is worth a whopping 827% premium.

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Source Fool.com