This Stock Could Double After Earnings, Analysts Say

The company is expected to report quarterly figures this week

Evelo Biosciences Inc (NASDAQ:EVLO) will report quarterly earnings on Thursday, May 2. Ahead of the event, analysts at Jefferies initiated coverage of the biotech stock with a "buy" rating and $18 price target -- more than double EVLO's closing price of $8.44 yesterday. Due to Evelo's "strong platform and promising data to date," the brokerage firm named Evelo stock its top pick for microbiome-based therapies.

As a result, EVLO shares are up 0.3% at $8.45 today. The stock has rebounded off its March low of $6.73, but has subsequently struggled to conquer its 40-day moving average. However, the $8 level -- which represents half of EVLO's May 2018 initial public offering (IPO) price of $16 -- has emerged as support in recent weeks. A move to the $18 level would mark a record high for the biotech.

Despite its recent struggles on the charts, most analysts are already in the bulls' corner. EVLO sports four "buy" ratings and only one "hold" endorsement, with not a "sell" rating in sight. Plus, the consensus 12-month price target of $22 represents expected upside of roughly 160% from the equity's current perch.