BioLife Solutions, Inc. (BLFS) shares fell 3% during Thursday's session despite analysts continuing to back a turnaround from a fundamental perspective. B. Riley FBR analyst Marc Wiesenberger resumed coverage of BioLife stock with a Buy rating and a price target of $27 per share, representing a 94.6% premium to Thursday's closing price. As cell and gene therapies gain approval (10 to 20 drugs each year by 2025), he believes that the company's revenue will scale "commensurately" given that its unique preservation technology is used extensively in associated clinical trials.
Many other analysts have echoed these sentiments over the past few months. In December, H.C. Wainwright analyst Raghuram Selvaraju said that recent weakness in BioLife stock was unwarranted, reiterating his Buy rating and raising his price target to $26 per share. During the prior month, Oppenheimer called the stock a "unique derivative play" on regenerative medicine, keeping an Outperform rating and $22 price target. BioLife Solutions is expected to report its next quarterly earnings on March 12, 2020.
From a technical standpoint, the stock opened higher and closed sharply lower during Thursday's session, creating a bearish engulfing pattern. The relative strength index (RSI) remains near oversold levels with a reading of 34.14, but the moving average convergence divergence (MACD) continues to trend lower. These indicators suggest that the stock could see some consolidation, but the overall trend remains bearish.
Traders should watch for consolidation above trendline support near $13 over the coming sessions. If the stock breaks down from these levels, traders could see a move toward lower trendline support at $11.50. If the stock moves higher, traders could see a move toward upper trendline resistance and the 200-day moving average at $17.23. Analysts remain confident in a rebound, but the technical picture remains bearish.
The author holds no position in the stock(s) mentioned except through passively managed index funds.