Up 35% in a month, is the Incannex share price on the comeback trail?

The Incannex Healthcare Ltd (ASX: IHL) share price has curled up in recent weeks, having bounced from yearly lows of 19 cents on 1 August.

At the time of writing, it is priced at 31 cents apiece, ready to open the session on Friday.

Meanwhile, the S&P/ASX 200 Health Care Index (ASX: XHJ) has climbed almost 1.5% in the past month of trade.

Is the Incannex share price climbing back?

After a bumpy few months, the Incannex share price has turned a corner in November and has lost 40% in the past month of trade.

Most recently the company advised of its strategic review of operations and assets, pointing out its $290 billion addressable market and potential $2 billion a year in revenue from psychedelic therapies.

It also said the obstructive sleep apnoea market is set to grow up to 6.2% per year from a valuation of US$10 billion.

Investors had a nibble following the release, although there was no immediate reaction from the update.

The question then becomes, just how much of the forward looking company growth is already priced into the stock.

Moreover, healthcare shares have caught a bid lately and are resting in the green.

The sector strength could potentially transpose onto the Incannex share price, meaning it would be on the clawback.

Other factors, such as recession fears, inflationary pressures and interest rate hikes are also equally important to consider.

Incannex had a cash position of $37.5 million as of 30 June 2022. It realized this after raising $24 million in an equity raising earlier in May 2022.

Returns for this year of trade are shown on the chart below.

Over the past 7 to 8 months, the Incannex share price is down more than 50%, however it has regained stem since August.

The post Up 35% in a month, is the Incannex share price on the comeback trail? appeared first on The Motley Fool Australia.

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More reading

• Can ASX cannabis shares ever fully recover?
• Why is the Incannex share price spiking 8% on Tuesday?
• ‘World’s largest portfolio’: Why this ASX cannabis share is up 36% in August
• Why Core Lithium, European Lithium, Incannex, and Qantas shares are pushing higher
• The Incannex share price has plunged 70% so far in 2022. What’s gone so wrong?

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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