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Why MannKind Is Up Big Today


What happened

Shares of MannKind Corporation (NASDAQ: MNKD) , a commercial-stage biopharma focused primarily on inhaled insulin, were up as much as 12% in afternoon trading on Tuesday. Shares had risen about 9% as of 3:45 p.m. EST.

So what

Investors can thank Robert Hazlett and Brian Marckx for today's jump.

Hazlett, an analyst at BTIG, initiated coverage on MannKind today and called shares a "buy." He also set a price target of $3, which is more than 150% higher than Monday's closing price. Hazlett told his investors that he believes that Afrezza will continue to grow and could eventually reach more than $350 million in peak sales in the U.S. That's a huge number when compared to MannKind's current market cap of about $250 million.

Marckx, an analyst at Zacks, was even more bullish on the company's near-term potential. He published a report stating that MannKind is worth $4 per share today.

Businesspeople cheering with their hands in the air.

Image source: Getty Images.

Traders bid up shares in response to the bullish sentiment.

Check out the latest MannKind earnings call transcript .

Now what

MannKind's most recent results were decent enough. Sales of Afrezza rose 49% to $5.1 million, and revenue from its collaborations totaled $12.4 million. That shrank the company's net loss to $14.9 million.

If MannKind can grow Afrezza so that its peak sales eventually reach $350 million and pull in additional money from partnership payments, its future is certainly looking bright. However, there's still a long road ahead of this company, and it will probably continue to post big losses in the meantime. That's a situation that I want no part of, so I'm content to keep my capital invested in more promising opportunities .

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Brian Feroldi has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy .

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.





This article appears in: Personal Finance , Stocks
Referenced Symbols: MNKD



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