Perspective stock gains as B. Riley starts at Buy (NYSE:CATX)

Shares of Perspective Therapeutics (NYSE:CATX) spiked on Friday after B. Riley Securities launched its coverage with a Buy rating and a 12-month target of $1.20, indicating over 100% upside based on its potential in radiopharmaceuticals.

Privately-held radiopharma, Viewpoint Molecular Targeting, with which the medical device company Isoray, Inc. merged in February 2023, forming Perspective Therapeutics (CATX), “brought in the upside potential,” B. Riley analyst Yuan Zhi wrote.

“With only a few publicly traded radiopharma remaining, we believe CATX is well-positioned to break out of the biotech pack and is worth investors’ attention,” B. Riley argued.

Its bullish view on Perspective Therapeutics (CATX) comes as dealmaking activity in the radiopharma space is gathering momentum.

In December, Eli Lilly (LLY) acquired radiopharma company Point Biopharma for $1.4B. Early this month, CATX itself announced an agreement with rival radiopharma company Lantheus Holdings (NASDAQ:LNTH) to sell ~20% of its equity.