Up 22% in a month, can the Imugene share price extend its rally?

Imugene extends its gains today.

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Key points
  • Imugene shares extend gains today and are now up 22% this past month
  • The healthcare sector has caught a bid since late June and this looks to have helped the share's cause
  • In the last 12 months, the Imugene share price has slipped more than 20% into the red

The Imugene Limited (ASX: IMU) share price has lifted into the green in afternoon trade on Wednesday.

At the time of writing, the share is swapping hands 3.26% higher at 23.75 cents apiece. For context, the All Ordinaries Index (ASX: XAO) is down 0.35%.

Imugene bounced from a 52-week low of 14 cents on 14 June and now trades around 70% higher off that mark, or around 22% in the past month.

A woman stretches her arms into the sky as she rises above the crowd.

Image source: Getty Images

What's up with the Imugene share price?

It had been all downhill for Imugene shareholders in the eight months leading to June. Shares had reverted from a peak of 60.5 cents on 9 November and sailed down to yearly lows by then.

However, healthcare shares have caught a bid in the new financial year, with the S&P/ASX Health Care Index (ASX: XHJ) up around 10% on the month.

The moves appear to have inflected positively on the Imugene share price, with both instruments moving in relatively close succession of each other this year to date, as seen below.

TradingView Chart

Meanwhile, the share is rated a buy from 100% of the brokers covering the company, according to Refinitiv Eikon data.

The consensus price target from this list is 56 cents per share, implying a considerable amount of upside potential should the brokers be correct.

Further, Immugene released its quarterly results last month, reinstating positive results from its final HER-Vaxx HERIZON Phase 2 trial.

It also noted a cash balance of approximately $100 million dollars leaving the quarter. Meanwhile, the company spent $8.1 million on research and development for the quarter.

In the last 12 months, the Imugene share price has slipped more than 20% into the red, and is down 40% this year to date.

Motley Fool contributor Zach Bristow has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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