IT Tech Packaging Inc (NYSEAMERICAN: ITP) is screaming for the top in the market this morning. However, if you’re looking for press releases or SEC filings that were issued this morning, you’re not going to find anything. Nonetheless, digging through message boards shows that there is a catalyst for the move.
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Here’s Why ITP Is Climbing
As mentioned above, IT Tech Packaging stock is making a run for the top, but with no news or SEC filings, many are wondering why. After digging through message boards, I’m noticing a clear theme with regard to the exciemtnet here.
Several messages across the boards point to a letter of intent the company entered into back in May. The letter of intent surrounded the company’s intention to buy a 60% equity interest in Baoding Huizhi Ruixing information Technology, a company that offers infections disease monitoring and reporting systems.
While there has been no news from the company regarding the closing of the transaction, investors are pointing to the transaction as a huge opportunity. Ultimately with COVID-19 cases climbing in the United States and around the world, efforts to control the pandemic will likely increase, ultimately benefiting ITP as a result of this transaction.
Analysts Seem to Love ITP Stock
It’s also worth mentioning that analysts see opportunity in IT Tech Packaging. In fact, the average rating on the stock is a Buy with a price target of $5 per share. With a current price of around $1 per share, that price target suggests a massive opportunity on the horizon.
The Bottom Line
The bottom line here is simple. ITP stock is making a run for the top as investors consider the implications of a letter of intent signed back in May. With COVID-19 cases climbing, the need for tools to combat the pandemic has never been higher. This acquisition gives ITP access to benefit from one of these solutions. This, combined with strong analyst views of the stock suggests that ITP should be on your watchlist.
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