12 Most Oversold Healthcare Stocks to Buy Now

2. Immunovant, Inc. (NASDAQ:IMVT)

Year Perf: -44.21%

Analyst Upside: 140.76%

Number of Hedge Fund Holders: 36

Immunovant, Inc. (NASDAQ:IMVT) develops treatments for autoimmune diseases. Its product pipeline includes batoclimab and IMVT-1402, novel antibodies targeting the neonatal fragment crystallizable receptor (FcRn).

The company’s primary focus is boosting the potential of its lead asset, IMVT-1402, which is rapidly progressing with six Investigational New Drug (IND) applications cleared. Its development plans for Graves’ disease also paint an optimistic picture for the company, as it does not have competition in the domain. The company’s pivotal studies in Graves’ disease (GD) and difficult-to-treat rheumatoid arthritis (D2T RA) are to be conducted using standard YpsoMate® autoinjector technology and its planned commercial formulation.

As of December 31, 2024, the company’s pro forma cash balance was approximately $825 million, including around $450 million in gross proceeds from a private placement that closed on January 15, 2025. 36 hedge funds hold stakes in the company, and its median price target of $20.98 implies an upside of 140.76%.

Baron Health Care Fund stated the following regarding Immunovant, Inc. (NASDAQ:IMVT) in its first quarter 2024 investor letter:

“Somewhat offsetting the above was adverse stock selection in biotechnology and health care supplies coupled with cash exposure amid favorable market conditions. Weakness in biotechnology was mainly due to disappointing performance from Rocket Pharmaceuticals, Inc. and Immunovant, Inc. (NASDAQ:IMVT), whose shares fell double digits in the period. Immunovant is focused on autoimmune disorders targeting the FcRn mechanism of action. A host of concerns weighed on Immunovant’s stock price, the most critical of which was competitor argenx SE’s failure in pemphigus vulgaris, which has raised questions about the addressable opportunity for the FcRn class. Overall, we continue to believe FcRn will command billions in revenue and that Immunovant has one of the two competitive offerings in the space. We are most optimistic about Immunovant’s development plans in Graves’ disease, a large commercial unmet need in which they currently have no competition.”