27% profit every 20 days?
This is what Nic Chahine averages with his option buys. Not selling covered calls or spreads… BUYING options. Most traders don’t even have a winning percentage of 27% buying options. He has an 83% win rate. Here’s how he does it.
Neuronetics Inc (NASDAQ:STIM) boasts a therapy that addresses a pressing medical need, according to JMP Securities.
The Analyst
ENTER TO WIN $500 IN STOCK OR CRYPTO
Enter your email and you'll also get Benzinga's ultimate morning update AND a free $30 gift card and more!
Analyst David Turkaly initiated coverage of Neuronetics with an Outperform rating and $36 price target.
The Thesis
For patients who have failed one of more types of antidepressant medication, Neuronetics' NeuroStar TMS therapy stimulates an exact location on the central or peripheral nervous system with electrical or magnetic energy, Turkaly said in the initiation note. (See the analyst's track record here.)
The end result is a similar therapeutic impact than what is achieved with pills, but safer, the analyst said.
FREE REPORT: How To Learn Options Trading Fast
In this special report, you will learn the four best strategies for trading options, how to stay safe as a complete beginner, a 411% trade case study, PLUS how to access two new potential winning options trades starting today.Claim Your Free Report Here.
Neuronetics' focus on major depressive disorder represents a $10-billion domestic market, according to JMP.
The market for antidepressant drugs, coupled with the company's differentiated treatment option, should result in a solid growth rate of 20 percent and lift the stock's valuation to a level in-line with the high-growth medical technology sector, the analyst said.
JMP's $36 price target is based on an approximate 7-8 multiple on EV/revenue on expected 2020 sales of $75 million.
Price Action
Neuronetics shares were down 0.88 percent at $26.02 at the close Monday.
Related Links:
Tactile Systems' Valuation Is 'Getting Stretched,' BTIG Says In Downgrade
Leerink Downgrades Hologic After 'Lower Quality' Q2 Revenue Beat
27% profit every 20 days?
This is what Nic Chahine averages with his option buys. Not selling covered calls or spreads… BUYING options. Most traders don’t even have a winning percentage of 27% buying options. He has an 83% win rate. Here’s how he does it.