MEI Pharma, Inc. (NASDAQ: MEIP) saw its shares make a solid gain on Thursday after the company received a crucial upgrade from Oppenheimer. Most analysts only issue price targets that are within a range of 5% to 25% for stocks, but this upgrade absolutely blows these small calls out of the water.

Oppenheimer initiated MEI Pharma with a Buy rating and a $6.50 price target, implying an upside of 289% from the most recent closing price of $1.67.

MEI Pharma, a development-stage biotechnology company working in epigenetics, the PI3K pathway and cancer metabolism, has three experimental compounds in development.

The first compound, Pracinostat, is being developed with Helsinn Group for the treatment of AML and other potential indications. The second, MEI-401, is being evaluated in relapsed or refractory chronic lymphocytic leukemia (CLL) and follicular lymphoma. MEI Pharma’s third compound is ME-344 and is the subject of an investigator-sponsored study in HER2-negative breast cancer as an exploration in combination with a VEGF or TKI inhibitor.

Oppenheimer noted in its report:

We estimate that two of these compounds, Pracinostat and MEI-401, could result in sales in calendar year 2022. We are initiating coverage of MEI Pharma with an Outperform rating and $6.50 target price.

Another analyst weighed in on the stock yesterday, but outside of that no calls have been issued since last year. Cann reiterated an Outperform rating.

Excluding Thursday’s move, MEI Pharma has outperformed the broad markets and risen 16% year to date.

Shares of MEI Pharma were last trading up 17% at $1.95, with a 52-week trading range of $1.23 to $2.28.

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