Palvella Therapeutics' stock rose after positive Phase 3 results for its drug QTORIN™, despite share dilution and rising short interest.

Palvella Therapeutics (PVLA) shares rose in pre-market trading after Mizuho upgraded the stock and raised its price target to $250, citing positive Phase 3 results for its lead drug QTORIN™ 3.9% rapamycin. The company completed an upsized public offering of 1.6 million shares at $125 each, raising $200 million to extend its cash runway, though the move introduces share dilution. Analysts from H.C. Wainwright, Chardan, and others also upgraded the stock, boosting investor confidence. Despite rising short interest—1.67 million shares, or 17.8% of the float—and insider selling, the stock’s market cap stands at $1.67 billion, with a consensus “Buy” rating and a price target of $176.44.