Some upside potential in Athenex after sales beat

NASDAQ:ATNX   Athenex, Inc
Analysts have been lowering their earnings forecasts on Athenex , Inc. , causing the stock to crash. However, the company not only met earnings expectations on its report this morning, but also beat sales expectations and raised its full-year revenue guidance from a 32.5% increase to a 37.5% increase year-over-year. That's a pretty big bump, and it could cause analysts to revise their views on the company in the coming weeks. One or two upgrades could send this stock climbing back to the $14-15 range.

A long-term risk is the company's financial health. Athenex operates at a large loss and only has cash to fund operations until late 2020. The company is expected to make some progress toward profitability by then, but it will still be a long way from achieving that goal. So this is not a safe long-term investment; it's just a short-term scalp.
Comment: This is a reasonable place to take profit on the Athenex trade. Congrats to all who got in on this one for 30-35%!!

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