This Underrated Small Cap Stock Has the Legs To Surge 100%

Traders who have shunned Viridian Therapeutics (VRDN) in 2024, owing to the 25% dip, year-to-date, might be missing out on something remarkable in the days or weeks to come. Despite the aggressive dip for the better part of 2024, Tradingbiz analyst Rahul Nambiampurath cannot but marvel at the stock’s aggressive comeback, charting gains as high as 26.12% over the past 30 days.

“A Positive clinical trial update in early July brought encouraging interim data from the Phase 3 THRIVE and THRIVE-2 studies for VRDN-001, showcasing strong clinical activity and a favorable safety profile. These technical yet relevant developments increased investor confidence, leading to a sudden price surge over the past 30 days,” mentions Rahul.

What Are the Viridian Fundamentals Hinting At?

Many tables have turned for Viridian Therapeutics over the past few weeks, adding to its fundamental strength. These include the following:

• Strong Clinical Pipeline: VRDN-001’s advanced stages and VRDN-003’s promising early results highlight the company’s strong clinical pipeline, making it an attractive prospect for long-term investors.
• Strategic Focus on TED: Viridian’s focused approach on thyroid eye disease, a niche yet significant market, positions it well for future growth.
• Potential Market Leadership: VRDN-001 and VRDN-003’s potential to become best-in-class therapies for TED could lead to significant market share, driving investor optimism.

And even though financial reports are a tad elusive, Rahul could get his hands on the following bit of financial insight, which positions VRDN well for a booming 2024:

Viridian’s cash, cash equivalents, and short-term investments totaled $613.2 million as of March 31, 2024, up from $477.4 million at the end of 2023. Rahul mentions that this well-placed financial position reassures investors about the company’s ability to sustain its operations and fund its ongoing clinical trials.

Diving Into the Charts

In early July, VRDN broke out of the triangle pattern and has been on an uptrend since. The stock is currently trading at $16.66, and the next level it needs to breach is $18. After that, you can expect a guided surge to $21.46 and even $24.118, provided the momentum indicator can keep up.

Rahul’s analysis showcases that as the relative strength index indicator pushes past the overbought zone, VRDN might correct a bit—somewhere close to $14—allowing new investors to take a position. However, if the fundamentals are willing, a breach past $21.46 can even send it as high as $30.555 and $35.10.

Royal Bank of Canada Analysts share Rahul’s viewpoint, setting an Outperform rating and a price target of $36 for VRDN. JMP Securities has a $42 price target for the VRDN, bettering Rahul’s expectations.