Targacept , Inc. (NASDAQ:TRGT)

CAPS Rating: 3 out of 5

A biopharmaceutical company engaged in the design, discovery and development of NNR Therapeutics, a new class of drugs for the treatment of multiple diseases and disorders of the central nervous system.


Player Avatar EtamarL (< 20) Submitted: 10/15/2009 4:38:38 AM : Underperform Start Price: $16.34 TRGT Score: +170.59

Here's a classic, I'm afraid. This stock is up 500% on some good milestone news. Their drug still has a way to go before final approval for marketing, and the stock is already valued 17 times earnings, bringing it to small cap range of $500M.

At half a billion dollars worth, I think this stock is a little ahead of itself, and should be fairly traded more in the vicinity of 6-8 times its earnings. These are unlikely to grow in the immediate future due to the good news we've heard.

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