Here’s why Iova stock surged 32% today and why the rally might not be over

Iova stock rallied 32% on Wednesday, snapping out of a long, sluggish stretch that had frustrated investors for months.

The Iovance Biotherapeutics (NASDAQ: IOVA) shares have been stuck in a tight range after a rough year, but today’s move was sharp enough to turn heads.

There wasn’t a single headline driving the surge, but traders pointed to growing buzz around the company’s pipeline and speculation that regulatory progress could be closer than expected.

Some also saw it as a technical breakout, triggering a wave of buying, including short covering.

Iova stock: What’s behind the rally?

Iovance Biotherapeutics is suddenly one of the most talked-about names on the NASDAQ and for good reason.

A mix of heavy short interest and a genuinely improving outlook is putting serious momentum behind the stock.

With roughly 34.5% of its float sold short, IOVA has all the makings of a classic short squeeze play.

But this isn’t just a technical move. The fundamentals are shifting too fast.

The biggest tailwind? The FDA recently rejected Replimune’s RP1, a competing skin cancer treatment.

That clears the runway for Iovance’s newly approved Amtagvi, giving it a real shot at becoming the go-to therapy for advanced melanoma.

With a key rival out of the picture (at least for now), Iovance has room to gain market share more quickly than expected.

The company’s tone is also turning more upbeat. Executives say they’re on track to beat Q2 guidance, citing steady physician demand and more patient starts since April.

Looking further ahead, Iovance is aiming high: management is targeting $1 billion in annual revenue and gross margins north of 80% as the treatment gains traction with earlier-stage patients and in community clinics, not just top-tier cancer centers.

It’s still early days, and biotech is never without risk.

But for now, IOVA looks like more than just another short squeeze. The fundamentals are catching up with the hype.

What analysts say?

Wall Street is leaning positive on Iova stock, though with a notable spread in expectations that underscores the stock’s high-risk, high-reward profile.

Of the 16 analysts currently covering the stock, a solid 82% rate it a “Strong Buy” or “Buy,” with no “Sell” ratings in sight.

About 19% have it pegged as a “Hold,” suggesting general optimism tempered by some lingering caution.

Price targets, however, are all over the map.

Chardan Capital’s Geulah Livshits is among the most bullish, calling for a $25 price, more than double where the stock trades now.

Others have landed in a more modest $8 to $20 range.

Then there’s UBS, which is holding the low end of the spectrum with a $2 target, reflecting skepticism around the durability of Iovance’s early momentum and long-term commercial viability.

Some analysts are highlighting IOVA’s relatively low price-to-sales ratio, framing it as a potential value play if the company can keep building revenue and commercial traction.

A lot will hinge on the upcoming Q2 earnings report, where strong results could either validate the bullish case or reinforce the concerns of skeptics.

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