Small-Cap Highlights: Iovance's Surge, Google Supplier's IPO, Burry Buys More Sprouts
Record demand for melanoma drugs has allowed Iovance Biotherapeutics to raise its annual revenue forecast by 15% / Photo: Michael Vi / Shutterstock.com
Iovance shares rose 31.5% after the company raised its revenue forecast amid strong demand for its melanoma treatment. Accelevation, a data center infrastructure provider, went public with a valuation of about $4 billion but opened below its offering price. Michael Burry bought more shares of Sprouts, betting on the chain’s long-term prospects following a sharp drop in its stock price. Highlights from the small-cap sector for the week of September 28 through October 2 are featured in the Oninvest digest.
Demand for melanoma treatment was driven by Iovance
Biotechnology company Iovance Biotherapeutics raised its revenue forecast for 2026 from $350–370 million to $410–420 million—an increase of approximately 15% at the midpoint of the range. The company attributed the revision to strong demand in the U.S. for Amtagvi and Proleukin. Iovance’s stock rose 31.5% on September 29, to $14.45.
Amtagvi is a cell therapy for patients with advanced melanoma who have already undergone treatment. Immune cells are extracted from the patient’s tumor, cultured in a laboratory, and reinfused; the drug Proleukin helps support these cells after reinfusion. In the second quarter, Iovance’s revenue grew 66% year-over-year to a record $99.3 million. The company is also testing its technology against other types of cancer.
After revising its forecast, H.C. Wainwright raised its price target for the stock from $9 to $20. However, Wall Street’s average price target—$12.8, according to MarketWatch—remained below the closing price on October 2.
Accelevation went public at a price below expectations
Accelevation, a manufacturer of data center infrastructure, held an IPO at $18 per share—below the initial price range of $20–24. The total offering amounted to $540 million: the company itself raised $180 million, while another $360 million went to its shareholder, Olympus Partners. Bloomberg estimated the company’s valuation at the offering price to be approximately $4 billion.
The company manufactures power distribution systems, cooling systems, and other data center infrastructure components. Among the clients listed on its website are Google, Amazon, Microsoft, and Meta. Accelevation’s revenue grew from less than $3 million in 2021 to $447.8 million in 2025. As of the end of June 2026, its order backlog stood at $1.1 billion.
However, the stock’s market debut was lackluster: On September 30, the shares began trading on Nasdaq at $17.55—2.5% below the IPO price. Freedom analyst Alem Bektemirov values the stock at $30.4, which is nearly 69% above the offering price, but warns that a slowdown in revenue growth could significantly lower the company’s valuation.
Burry bought more Sprouts shares after the crash
Michael Burry, who served as the inspiration for the protagonist in the movie *The Big Short*, announced the purchase of additional shares in Sprouts Farmers Market—a chain of natural and organic food stores. Burry cited a price of about $63 per share but did not disclose the size of the transaction. He is buying shares in the retailer several months after they fell from a peak of about $182 in June 2025.
The investor attributes the sell-off in the consumer sector to rising interest rates but remains optimistic about Sprouts’ long-term prospects. He is drawn to the company’s loyal premium-segment customers, high profitability, and share buybacks. At the same time, the business is already under pressure: comparable sales in the second quarter fell 1% year-over-year.
According to MarketWatch, 11 of the 20 analyst recommendations are "buy," seven are "hold," and two are "sell." The average price target of $95.4 is about one-third higher than the current price.
Capricor shares rose on the back of new trial data
Capricor Therapeutics shares rose 10.5% on September 30, to $9.5. Investors reacted to data presented in Japan from a two-year follow-up of participants in trials of deramiocel, an experimental cell therapy for Duchenne muscular dystrophy. This rare genetic disorder causes progressive muscle weakness and primarily affects boys.
An oral presentation on the study results is scheduled for October 3. The next key date is November 22: by this date, the FDA must make a decision on the drug’s marketing application. The regulator has extended the review period to examine additional data and a refined indication—preservation of upper limb function.
Regulatory risk remains high: in July, an FDA advisory committee did not endorse the drug’s efficacy against heart muscle damage associated with this disease. According to MarketWatch, four analysts recommend buying Capricor shares, while six recommend holding them. The average price target of $33.56 implies an increase of approximately 275% from the closing price on October 2.
