Is it likely that the price will decline further before its parabolic move upward if the approval is made by the FDA

It is possible that the stock price may experience some volatility before a potential parabolic move upward if the FDA approves Humacyte's Biologic License Application (BLA) for its Acellular Tissue Engineered Vessel (ATEV). 1. **Regulatory Risk**: The anticipation of FDA approval can create a bullish sentiment, as seen in the stock's recent price increase. However, there is still regulatory risk involved, and the actual approval process may not proceed as smoothly as expected. Any negative developments or delays in the review process could lead to a decline in the stock price before approval. 2. **Market Expectations**: Analysts have set an average price target of $9.60, with a high forecast of $15.00 and a low forecast of $6.00, representing a significant upside from the current price. This suggests that the market expects a positive outcome from the FDA review, which could drive the stock price up after approval. 3. **Historical Performance**: Humacyte's stock has shown a significant increase of 57.96% over the past year, indicating a strong belief in the company's potential. This historical performance could support a parabolic move upward if the FDA approval is achieved. 4. **Investor Sentiment**: The sentiment among investors can be influenced by the FDA approval process. If the approval is seen as a certainty, investor sentiment could shift to a more bullish outlook, potentially leading to a parabolic move upward in the stock price. In conclusion, while there is no guarantee that the stock price will decline further before a potential parabolic move upward if the FDA approves Humacyte's BLA, it is possible that the stock may experience some volatility as investors anticipate and react to the regulatory decision. The ultimate outcome will depend on a variety of factors, including the FDA's review process, investor sentiment, and broader market conditions.