In this article, we will take a look at the 5 most promising biotech stocks to buy according to analysts. To read our analysis of the recent trends and market activity, you can go to the 11 Most Promising Biotech Stocks to Buy According to Analysts.
5. Ultragenyx Pharmaceutical Inc. (NASDAQ:RARE)
Upside Potential as of December 13: 104.58%
Number of Hedge Fund Holders: 27
Novato, California-based Ultragenyx Pharmaceutical Inc. (NASDAQ:RARE) is a is a biopharmaceutical company focused on the development of novel products for the treatment of serious rare and ultra-rare genetic diseases.
The portfolio of Ultragenyx Pharmaceutical Inc. (NASDAQ:RARE) includes four commercial products: DOJOLVI® for patients with molecularly confirmed long-chain fatty acid oxidation disorders, MEPSEVII® for Mucopolysaccharidosis VII, CRYSVITA® for hypophosphatemic disorders, and EVKEEZA® for Homozygous Familial Hypercholesterolemia.
On November 2, Ultragenyx Pharmaceutical Inc. (NASDAQ:RARE) released its financial results for Q3 2023. Its revenue increased by 8% y-o-y to $98 million while net loss shrunk by 35% y-o-y to $160 million.
On October 23, Ultragenyx Pharmaceutical Inc. (NASDAQ:RARE) announced the closing of its previously announced underwritten public offering to raise net proceeds of approximately $326 million.
4. Arrowhead Pharmaceuticals Inc. (NASDAQ:ARWR)
Upside Potential as of December 13: 116.69%
Number of Hedge Fund Holders: 24
Pasadena, California-based Arrowhead Pharmaceuticals Inc. (NASDAQ:ARWR) develops medicines that treat intractable diseases by silencing the genes that cause them. Using a broad portfolio of RNA chemistries and efficient modes of delivery, its therapies trigger the RNA interference mechanism to induce rapid, deep, and durable knockdown of target genes.
On November 29, Arrowhead Pharmaceuticals Inc. (NASDAQ:ARWR) released its financial results for the three months ended September 30, 2023. Following the release, RBC Capital analyst Luca Lussi reiterated an ‘Outperform’ rating for Arrowhead Pharmaceuticals Inc. (NASDAQ:ARWR) shares with a price target of $50. The price target represents a potential upside of 102.51% based on the share price on December 13.
As of Q3 2023, Arrowhead Pharmaceuticals Inc. (NASDAQ:ARWR) shares were held by 24 hedge funds with the total shares held by these hedge funds valued at $180 million.
Like other stocks such as Moderna, Inc. (NASDAQ:MRNA), Royalty Pharma Plc (NASDAQ:RPRX), and Rocket Pharmaceuticals, Inc. (NASDAQ:RCKT), Arrowhead Pharmaceuticals Inc. (NASDAQ:ARWR) is among the 11 most promising biotech stocks according to analysts.
3. Denali Therapeutics Inc. (NASDAQ:DNLI)
Upside Potential as of December 13: 160.81%
Number of Hedge Fund Holders: 19
Founded in 2015, San Francisco, California-based Denali Therapeutics Inc. (NASDAQ:DNLI) is a biopharmaceutical company developing a broad portfolio of product candidates engineered to cross the blood-brain barrier (BBB) for the treatment of neurodegenerative and lysosomal storage diseases.
On November 7, Denali Therapeutics Inc. (NASDAQ:DNLI) released its financial results and operational update for Q3 2023. It has a broad preclinical and clinical stage portfolio with programs that have shown significant results at different clinical study stages. The company had cash, cash equivalents, and marketable securities of nearly $1.1 billion, as of September 30.
As of Q3 2023, Denali Therapeutics Inc. (NASDAQ:DNLI) shares were owned by 19 hedge funds with the total shares held by them valued at $174 million. Its largest hedge fund shareholder was Baker Bros. Advisors with ownership of 2.3 million shares valued at $47 million.
2. Zai Lab Limited (NASDAQ:ZLAB)
Upside Potential as of December 13: 161.20%
Number of Hedge Fund Holders: 18
Shanghai, China-based Zai Lab Limited (NASDAQ:ZLAB) is a commercial-stage, global biopharmaceutical company focused on medicines for oncology, autoimmune disorders, infectious diseases, and neurological disorders.
The product portfolio of Zai Lab Limited (NASDAQ:ZLAB) comprises of five commercialized products, including Zejula® for ovarian cancer, Optune®, Qinlock®, NUZYRA®, and VYVGART®. In addition, its product pipeline includes potentially global best-in-class and/or first-in-class therapies.
On November 7, Zai Lab Limited (NASDAQ:ZLAB) released its financial results for Q3 2023. Its revenue, at $69 million, exceeded consensus estimates by $2.6 million, while normalized EPS, at -$0.71, surpassed estimates by $0.32.
Following the earnings release, Citi lowered the price target on Zai Lab Limited (NASDAQ:ZLAB) shares to $123 from $128 and maintained a ‘Buy’ rating on the shares. The analyst expects the commercial uptake of VYVGART to be the key focus for the stock in the near term.
1. Intellia Therapeutics, Inc. (NASDAQ:NTLA)
Upside Potential as of December 13: 169.98%
Number of Hedge Fund Holders: 27
Cambridge, Massachusetts-based Intellia Therapeutics, Inc. (NASDAQ:NTLA) is a leading clinical-stage genome editing company, developing novel, potentially curative therapeutics leveraging CRISPR-based technologies.
On October 18, Intellia Therapeutics, Inc. (NASDAQ:NTLA) announced that the U.S. FDA has cleared the company’s Investigational New Drug application for NTLA-2001 for the treatment of transthyretin (ATTR) amyloidosis with cardiomyopathy. The company is actively preparing for a global pivotal Phase 3 study of NTLA-2001.
On November 13, Morgan Stanley analyst Terence Flynn lowered the price target on Intellia Therapeutics, Inc. (NASDAQ:NTLA) shares to $85 from $90 and maintained an ‘Overweight’ rating for the shares. The price target represents an upside potential of 201.95% based on the share price on December 13.
Intellia Therapeutics, Inc. (NASDAQ:NTLA) ranks #1 on our list of 11 most promising biotech stocks to buy according to analysts based on the highest upside potential on its share price according to the average analyst price targets. The shares of the company were also widely owned by hedge funds, as of Q3 2023, with 27 prominent hedge funds tracked by Insider Monkey holding its shares valued at $647 million.
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