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BASF and Cardiol Therapeutics recommended buys; TUI rides momentum
BASF (OTCQX:BASFY) shares have gained over 30% within six months. But is the rally in BASF shares slowly running out of steam? The fact that the stock did not rise sharply yesterday despite a significant price target increase suggests this is the case. Many experts see little potential for further price increases.
The situation is different for the biotech company Cardiol Therapeutics (TSX:CRDL). The analysts at Canaccord believe the shares of the specialist in cardiovascular diseases could perform by around 200%. Financing is secured until 2026, and important study data is due in the current quarter.
TUI Group (OTCPK:TUIFF) stock has been on a roll for several months now. Will share prices continue to rise with the increase in temperatures? Management is certainly optimistic about the future.
Cardiol Therapeutics: High cash ratio and high price target
Ahead of important study data readout, analysts are positioning themselves for Cardiol Therapeutics. After First Berlin had already set a price target of USD 3.60 and thus saw a price potential of around 100%, the experts at Canaccord have gone one better. They believe the fair value of the specialist for diseases of the cardiovascular system is USD 6.00 per share. The stock is currently trading at USD 1.88. This values the biotech company at around USD 110 million. A high cash ratio must be taken into account here. As of the end of December 2023, the company had a cash balance of approximately CAD 35 million. From the company’s perspective, they are fully financed to fund operations until 2026.
But where does the analysts’ optimism come from that Cardiol’s share price will soon rise? Both expect positive study data in the second quarter. In early February, Cardiol announced that recruitment for the Phase II open-label study of its drug candidate CardiolRx™ for the treatment of inflammation of the pericardium (pericarditis) had been completed. In addition, CardiolRx™ received FDA approval as an orphan drug for rare diseases (Orphan Drug Designation). If the ongoing data is successful, expected in the second quarter of 2024, this will potentially shorten the path to approval.
Cardiol is also making progress with CardiolRx™ for a second rare disease indication. Patient recruitment for the ARCHER trial of CardiolRx™ in acute myocarditis (inflammation of the heart muscle) has exceeded 50% enrollment and is progressing to be completed in the third quarter of 2024. The ARCHER trial is expected to enroll 100 patients at leading cardiac centers in North America, Europe, Latin America, and Israel. The Phase II trial will investigate the safety and tolerability of CardiolRx™, as well as its impact on myocardial recovery, in patients presenting with acute myocarditis.
Shareholders can, therefore, look forward to a lively news flow throughout the current year.