NEW YORK (TheStreet) -- Arrowhead Research (ARWR - Get Report) hit a five-year high of $27.21 on Wednesday after the FDA approved a phase 2a trial of its hepatitis B drug ARC-520, and several analysts consequently praised the company.
Deutsche Bank initiated coverage on the stock with a "buy" rating and a target price of $45. The firm predicted the drug could peak at annual sales of $5.2 billion, and noted clinical trial data prior to that in 2014 and 2015 could elevate the stock further.
RBC Capital Markets also initiated coverage at "outperform" with a target price of $35. The firm notes that the FDA approval could eventually lead to a multi-billion-dollar product and more drugs derived from the same platform.
Arrowhead has had quite the turnaround in the last year, as its one year low price is $1.65.
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TheStreet Ratings team rates ARROWHEAD RESEARCH CORP as a "sell" with a ratings score of D. TheStreet Ratings Team has this to say about their recommendation:
"We rate ARROWHEAD RESEARCH CORP (ARWR) a SELL. This is driven by several weaknesses, which we believe should have a greater impact than any strengths, and could make it more difficult for investors to achieve positive results compared to most of the stocks we cover. The company's weaknesses can be seen in multiple areas, such as its deteriorating net income and weak operating cash flow."