12 Best Up and Coming Stocks to Buy According to Wall Street Analysts

3. Vaxcyte Inc. (NASDAQ:PCVX)

Average Upside Potential as of March 21: 105.48%

Number of Hedge Fund Holders: 50

Vaxcyte Inc. (NASDAQ:PCVX) is a clinical-stage biotechnology vaccine company. It develops conjugate and novel protein vaccines to prevent bacterial infectious diseases, with lead candidates like VAX-24 and VAX-31 targeting pneumococcal disease. It’s also developing vaccines for Group A Streptococcus, periodontitis, and dysentery/shigellosis.

The company is actively developing and commercializing its pneumococcal conjugate vaccines (PCVs), which combat bacterial diseases. This segment is driven by the global pneumococcal vaccine market, which is valued at ~$8 billion annually, with growth potential in the adult segment due to expanded vaccination guidelines. The company’s lead PCV candidate, VAX-31, has demonstrated robust immune responses and a safety profile in adults comparable to existing vaccines. The FDA granted Breakthrough Therapy Designation for VAX-31, which expedites its regulatory pathway.

Vaxcyte Inc. (NASDAQ:PCVX) is advancing VAX-31 into a Phase 3 program for adults, with initiation expected by mid-2025 and top-line data anticipated in 2026. The company is also progressing its VAX-24 and VAX-31 programs in infants, with data from the VAX-24 Phase 2 study expected by the end of FQ1 2025. To support the anticipated commercial demand, the company is investing in manufacturing scale-up, which includes the construction of a manufacturing suite at Lonza. It’s expected to be completed by early next year.

TimesSquare Capital U.S. Small Cap Growth Strategy stated the following regarding Vaxcyte Inc. (NASDAQ:PCVX) in its Q3 2024 investor letter:

“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.”