ADMA Stock Receives Consensus “Buy” Rating, Major Upswing Ahead?

ADMA Stock

ADMA stock has just received a consensus rating of “Buy” from nine brokerages covering the stock. With all in agreement, why are analysts bullish on this biotechnology stock?

Let’s find out!

AMDA Stock

Selling for $4.53 at present on the NASDAQ exchange, ADMA Biologics Inc (NASDAQ:ADMA) has had a tough time crossing the $5 mark. The volatile month shows increasing trading volume, yet investors seem unsure—sudden gains are correcting almost on the daily. But a surge to $5 and above could be on the horizon, as according to Marketbeat, the stock has an average price target of $11.42 set by nine analysts who have been closely watching ADMA stock over the last year.

Why “Buy”?

ADMA is a biotechnology company aiming to find a way to “mend” or enhance non-existent immune systems. It’s no easy task.

Its flagship treatment, called RI-002, is currently in phase 3, awaiting FDA approval. Getting to this stage has been a struggle, however, and ADMA stock bares the scars. According to Sickeconomics, the treatment has suffered “an epic series of setbacks and frustrations on its way to commercialization.”

>> ENPH Stock Soars as Enphase Energy Earnings Beat Estimates

Why would this be? One reason is that RI-002 is a liquid derived from human blood plasma and, as such, is hard to find, make, and store.

The company’s original contract manufacturer failed to pass government inspection, and this hindered the entire operation. But as of October 2018, ADMA has secured the necessary funding and management expertise to handle this part of the process itself. Its Florida manufacturing facility has passed government inspection and is on the verge of producing RI-002 as soon as it is approved.

This very fact is most likely why analysts are shouting buy.

ADMA Stock: Turning Around

If/when approval is granted, the company will receive megabucks to produce its flagship treatment. Effectively, ADMA will turn from a biotechnology company that is burning cash to try and do something, into a “cash positive, vertically integrated manufacturer of a hard to make, in demand, medicine.”

That position is the holy grail for biotechnology investors. ADMA stock price is low now but could soar once approval is granted and demand comes knocking at the door.

What do you think? Are you a biotech stock investor?

Featured Image: DepositPhotos © JanPietruszka

Please See Disclaimer


Risks and Disclosure:

Information provided in this correspondence is intended solely for informational purposes and is obtained from sources believed to be reliable. While all information is believed to be reliable, it is not guaranteed by us to be accurate. Individuals should assume that all information contained on this website is not trustworthy unless verified by their own independent research. Also, because events and circumstances frequently do not occur as expected, there will likely be differences between any predictions made or suggested and the actual results.

All statements and opinions expressed are the opinions of the author and not of Microsmallcap.com or its officers. The author is wholly responsible for the validity of all statements. Microsmallcap.com was not involved in any aspect of the article preparation. The author was not paid by Market Jar Media Inc for this article. The author did not pay Microsmallcap.com to publish or syndicate this article.

This article does not constitute as investment advice. Each reader is encouraged to consult with his or her individual financial advisor; any and all actions taken by a reader as a result of the information presented here is his or her own responsibility. By opening this page, each reader accepts and agrees to Microsmallcap.com's terms of use and full legal disclaimer. This article is in no way a solicitation for investment. Microsmallcap.com does not render general or specific investment advice. Any information on Microsmallcap.com should not be considered a recommendation to buy or sell any security. Microsmallcap.com does not endorse or recommend the business, products, services or securities of any company mentioned on Microsmallcap.com.

Futures, stocks and options trading involves substantial risk of loss and is not suitable for every investor. The valuation of futures, stocks, and options may fluctuate, and, as a result, clients may lose more than their original investment and possibly their entire investment. Any content on this website should not be relied upon as advice or construed as providing recommendations of any kind. It is your responsibility to confirm and decide which trades to make. Always consult a licensed investment professional before making any investment decision. Be extremely careful, investing in securities carries a high degree of risk; you may likely lose some or all of the investment.

Please see our full disclaimer here for additional details before making any investment decisions.