Verastem Inc. (NASDAQ:VSTM) is one of the 10 best stocks under $10 that could triple.
On July 7, RBC Capital maintained its Outperform rating on Verastem Inc. (NASDAQ:VSTM)
The firm reduced the target price from $15 to $14, which still offers a revised upside potential of over 211%. The price target adjustment accompanies the firm’s broader biotech sector earnings preview for the second quarter. RBC Capital highlighted the sector’s notable momentum during June, including a 2-week rally outpacing the S&P.
This was supported by encouraging data around innovations, as well as a favorable sentiment regarding the FDA’s flexible stance. The firm expects capital inflows to persist as the sector’s outlook offers more visibility compared to others. It acknowledged strong second quarter earnings across the sector, with more opportunities to achieve earnings beats, and maintains that the ongoing M&A activity is likely to offer more support.