Can a biotech stock that's down by about 40% in the last month have any chance of rallying to multiply in value by a factor of five over the next two years? Prospective investors looking for a big catch may be tempted to look to Anavex Life Sciences , (NASDAQ: AVXL) a clinical-stage drug developer making waves, thanks to recently disclosed data from one of its trials investigating a therapy for Alzheimer's disease.
Growing by 5x would give Anavex a market cap of nearly $3 billion. That's a tall order for a company with no revenue whatsoever today, but it might still be possible, and some people think its near-term performance will be quite favorable. Wall Street analysts' average one-year price target on the stock, for example, is around $41 -- around 390% higher than its Thursday closing price of $8.35.
With expected growth like that, the prospect of the stock rising by 5x is very much on the table, but you probably shouldn't bet on it actually happening. Here's why.
For further details see:
Anavex Life Sciences Stock Could 5x Before 2025 -- Here's Why