At the time of writing, GW Pharmaceuticals (NASDAQ:GWPH) stock is soaring nearly 15% and trading at $174.65 USD. At this current value, GWPH is trading at a six-month high, akin to pre-legalization prices when hype and excitement drove this market through the roof.
The stock hike has been attributed to very impressive Q1 results (released yesterday), but it is being spurred on by bullish analyst calls.
GW Pharmaceuticals Skyrockets on Q1 Results
According to MarketWatch, the key factors to take away from the Q1 results are as follows:
- GW Pharmaceuticals beat earnings expectations but reported lower-than-expected revenue;
- Net losses of $71.9 million or 20 cents a share. This was greater than the year-ago period, which showed losses of $61.8 million;
- Revenue increased dramatically, rising to $6.6 million from $2.2 million in the year-ago period;
- GW Pharmaceuticals stock has increased 29% in the past year.
Bullish Calls From Analysts
Investors have reacted well to the news, but analysts are taking these numbers and running with them. Upbeat calls have been expressed by JP Morgan analyst Cory Kasimov who, in a note to clients, said the Epidiolex launch impressed:
"It's hard to see how the Epidiolex launch could have gotten off to a better start [...] In our view, commercial metrics to date suggest that Epidiolex should continue to impress."
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Epidiolex is GW's flagship product and is the first cannabis-derived drug that received approval by the American FDA. Anticipation for these earnings results, in particular, has been rife, as they give the first indication of Epidiolex's success since hitting the market late last year.
Kasimov reiterated his overweight rating, signifying that GW Pharmaceutical stock is better value for money than other stocks. He also increased his stock price target to $180 USD.
Another analyst, Paul Matteis, also raised his price target from $179 to $191 and reiterated his buy rating.
The Bottom Line
Today's jump makes GW Pharmaceuticals stock stand out from the crowd. It is a top gainer on the index, but do you think this stock is showing BUY signals?
What do you think about the GW Pharmaceuticals Q1 results? Let us know below!
Featured Image: GW Pharmaceuticals
