NEW YORK (TheStreet) -- Shares of Array BioPharma (ARRY) - Get Report were higher on heavy trading volume early Tuesday afternoon after the company announced yesterday that its melanoma therapy met its primary goal in a late-stage clinical trial.
JPMorgan upped its price target on Array shares to $8 from $6 earlier today due to the results, reiterating an "overweight" rating.
Jefferies similarly increased its price target on the Boulder-based biopharmaceutical company's stock to $8 from $7. The firm has a "buy" rating on Array shares.
JPMorgan is "increasingly confident" Array's therapy combining two drugs, encorafenib and binimetinib, will be approved by the FDA to treat melanoma that has spread from the site of origin and can't be operated on.
The drug combination could have more than a $325 million opportunity in the U.S. alone, JPMorgan estimates.
Jefferies anticipates Array will generate $580 million in peak sales from the treatment.
More than 34.38 million of Array shares have traded so far on Tuesday vs. the 30-day average volume of 5.52 million shares.
Separately, TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this articles's author.
TheStreet Ratings rated this stock as a "sell" with a ratings score of D.
The company's weaknesses can be seen in multiple areas, such as its feeble growth in its earnings per share, deteriorating net income and generally disappointing historical performance in the stock itself.
You can view the full analysis from the report here: ARRY