12 Best Healthcare Stocks to Buy According to Analysts

4) Vaxcyte, Inc. (NASDAQ:PCVX)

Number of Hedge Fund Holders: 48

Average Upside Potential: 77.3%

Vaxcyte, Inc. (NASDAQ:PCVX) is a clinical-stage biotechnology vaccine company, engaged in developing novel protein vaccines to prevent or treat bacterial infectious diseases. Goldman Sachs analyst, Chris Shibutani, gave a new “Buy” rating on the company’s stock because of a combination of factors, such as strong clinical data for Vaxcyte, Inc. (NASDAQ:PCVX)’s leading programs, particularly VAX-31 in adults. The company’s proprietary technology platform remains critical in creating differentiated solutions in the pneumococcal vaccine market, where it targets to be a leading player.

As per the analyst, the platform has catered to traditional development challenges and demonstrated promising results. Furthermore, the analyst noted the potential for Vaxcyte, Inc. (NASDAQ:PCVX)’s pipeline to provide long-term growth by expanding the value proposition. Thanks to the company’s positive VAX-31 data, it has completed a follow-on equity offering, garnering $1.4 billion in net proceeds and strengthening its balance sheet.

Vaxcyte, Inc. (NASDAQ:PCVX) remains well-positioned to maintain continued positive momentum across its PCV (pneumococcal conjugate vaccine) franchise. TimesSquare Capital Management, an equity investment management company, released its Q3 2024 investor letter. Here is what the fund said:

“Vaxcyte, Inc. (NASDAQ:PCVX) (developer of vaccines) and Insmed Incorporated (developer of treatments for various pulmonary diseases). Vaxcyte’s lead pneumococcal vaccine candidate recently reported positive clinical data across a wider range of pneumonia types than current treatments. That created significant potential for Vaxcyte to take share within a multi-billion-dollar market, and we began to build a position.”