10 Stocks with Biggest Upside Potential According to Hedge Funds

2) Ionis Pharmaceuticals, Inc. (NASDAQ:IONS)

Average Upside Potential: 62.23%

Number of Hedge Fund Holders: 43

Ionis Pharmaceuticals, Inc. (NASDAQ:IONS) discovers and develops RNA-targeted therapeutics in the US.

Wall Street analysts believe that Ionis Pharmaceuticals, Inc. (NASDAQ:IONS) continues to advance multiple late-stage candidates focused on potential approval and commercialization. With its proprietary antisense oligonucleotide (ASO) technology platform, the company remains focused on addressing significant unmet needs in rare diseases and cardiometabolic disorders.

Ionis Pharmaceuticals, Inc. (NASDAQ:IONS)’s pipeline has a strong potential, featuring numerous candidates in late-stage development that might reshape treatment paradigms for their respective indications. At the forefront is eplontersen, which is being developed in alliance with AstraZeneca for treating transthyretin-mediated amyloidosis (ATTR), both in its polyneuropathy (PN) and cardiomyopathy (CM) forms.

While the company focuses on investing significantly in R&D to advance its pipeline, it is also progressing toward a more sustainable financial position. Wall Street analysts expect that Ionis Pharmaceuticals, Inc. (NASDAQ:IONS) will reach an EBIT trough in 2024, with several product launches that are planned for 2024-2025 anticipated to drive revenue growth. Its partnership with AstraZeneca offers global distribution capabilities, which might help Ionis Pharmaceuticals, Inc. (NASDAQ:IONS) in maximizing the commercial potential of eplontersen.

The company’s revenue increased for Q2 2024 and H1 2024 by 20% and 8% as compared to the same periods last year, respectively. These increases were mainly due to higher R&D revenue reflecting the value Ionis Pharmaceuticals, Inc. (NASDAQ:IONS)’s pipeline and technology generates.

Leerink Partners raised the company’s shares from a “Market perform” rating to an “Outperform” rating, increasing its price objective from $53.00 to $62.00 on 24th July.