Shares of Vaxart (NASDAQ: VXRT) were skyrocketing 26.4% higher as of 11:22 a.m. EDT on Monday. The huge jump came after investment bank B. Riley FBR initiated coverage on the stock with a buy rating and a price target of $22. This price target represented a 176% premium over Vaxart’s closing price on Friday.
It’s usually best to take analysts’ price targets with a grain of salt. On the other hand, investors can benefit from trying to understand why analysts like or don’t like a given stock.