Inhibitex Shares Jumped: What You Need to Know

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Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.

What: Shares of biotech Inhibitex (NAS: INHX) have jumped 10% this morning on the heels of bullish comments from an analyst, downplaying recent fears.

So what: Last week, Inhibitex shares got crushed when fellow drugmaker Pharmasset (NAS: VRUS) reported safety concerns with its experimental hepatitis C drug, sparking fears for Inhibitex, whose own experimental hepatitis C drug INX-189 shares some similarities with it. This morning, Canaccord Genuity has reiterated its buy rating and thinks Inhibitex's drug is safer.

Now what: Canaccord analyst George Farmer believes the sell-off was an overreaction and recommends aggressively buying the shares, while the company has assigned a price target of $22 to complement its rating. The $22 price target represents more than double Friday's close of $10.45, and even a healthy 91% higher than today's high so far of $11.49. Farmer believes the Street is factoring in higher risks with INX-189, which he believes is presenting an attractive entry point.

Interested in more info on Inhibitex? Add it to your watchlist byclicking here.

At the time this article was published Fool contributor Evan Niu holds no position in any company mentioned. Click here to see his holdings and a short bio. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

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