Analysts that do commissioned work are generally loathe to cover...

Analysts that do commissioned work are generally loathe to cover a company that they do not think represents value. If they put a buy on a loser they may gain some income in the short term but they damage their reputation and their ability to generate income in the long term. Broking analysts are usually more conflicted, particularly in biotech. The money brokers make executing trades on biotechs would be peanuts. The money is in capital raisings. It is $10m, $20m, $30m or whatever at 5%-6% compared to trading at 0.3%. Just to do that kind of volume you would need to control both sides of every trade in a biotech for 6 months and you make 0.6%. What is a broker going to do to an analyst that won't put a buy on a stock corporate wants to raise capital for?

I have followed these sorts of stocks for a while. The best thing you can do is read the report and ask yourself a few questions. Does the analyst sound like they know what they are doing (most don't, particularly in biotech)? Can you find any negative information they have hidden or not addressed? Is the market cap stupid (eg $2b+ for a highly risky preclinical asset like a CART therapy)? Do management know the area they are working in and have demonstrated expertise? The big one is, does the story make sense and sound credible?

Bill