5 Most Undervalued Pharma Stocks To Buy According To Analysts

In this piece, we will take a look at the five most undervalued pharmaceutical stocks to buy according to analysts. If you want to learn more about the pharma industry, then read 13 Most Undervalued Pharma Stocks To Buy According To Analysts.

5. Elanco Animal Health Incorporated (NYSE:ELAN)

Share Price Upside: 40%

Elanco Animal Health Incorporated (NYSE:ELAN) is an animal pharmaceutical company that develops drugs that help protect animals from parasites and heart diseases, viral infections, and other ailments. The firm made a big announcement in September when it became one of the few to offer an oral anemia treatment for cats.

By Q2 2023 end, 31 out of the 910 hedge funds polled by Insider Monkey had held a stake in Elanco Animal Health Incorporated (NYSE:ELAN). Out of these, the firm’s largest shareholder is Ken Griffin’s Citadel Investment Group since it owns 13.2 million shares that are worth $133 million.

4. Jazz Pharmaceuticals plc (NASDAQ:JAZZ)

Share Price Upside: 49%

Jazz Pharmaceuticals plc (NASDAQ:JAZZ) is an Ireland based biopharmaceutical firm that develops treatments for cancer and sleep disorders among others. Its shares are rated Strong Buy on average and analysts have penciled in a $68 share price upside based on the average share price target of $201.06.

After digging through 910 hedge fund holdings for this year’s June quarter, Insider Monkey found that 44 had bought the company’s shares. Jazz Pharmaceuticals plc (NASDAQ:JAZZ)’s biggest hedge fund investor is Robert Pohly’s Samlyn Capital through its $166 million stake.

3. Viatris Inc. (NASDAQ:VTRS)

Share Price Upside: 55%

Viatris Inc. (NASDAQ:VTRS) is a global pharmaceutical company that sells drugs for nervous system disorders, cancer, and skin diseases. The firm is currently seeking to reduce its debt burden, and for this purpose, it is selling three business divisions.

Insider Monkey took a look at 910 hedge fund portfolios for 2023’s second quarter and discovered 42 Viatris Inc. (NASDAQ:VTRS) investors. Stephen Dubois’ Camber Capital Management owns the largest stake among these which is worth $224 million.

2. Perrigo Company plc (NYSE:PRGO)

Share Price Upside: 59%

Perrigo Company plc (NYSE:PRGO) sells general wellness products such as pain killers and sleep medications. It’s another stock on our list that is rated Strong Buy on average. Perrigo Company plc (NYSE:PRGO)’s financial performance has also been strong as of late, as it has beaten analyst EPS estimates in three of its four latest quarters.

During this year’s June quarter, 23 out of the 910 hedge funds part of Insider Monkey’s research had bought and owned the firm’s shares. Perrigo Company plc (NYSE:PRGO)’s biggest hedge fund shareholder is Stephen Dubois’ Camber Capital Management courtesy of a $84 million stake that comes via 2.5 million shares.

1. Organon & Co. (NYSE:OGN)

Share Price Upside: 74%

Organon & Co. (NYSE:OGN) is a diversified healthcare company that sells drugs and medical devices. Investment bank Goldman Sachs is one of the most bullish among those that cover Organon & Co. (NYSE:OGN)’s shares, as it believes that the company’s women health products can do well in their market.

During Q2 2023, 31 out of the 910 hedge funds profiled by Insider Monkey had invested in Organon & Co. (NYSE:OGN). Alec Litowitz and Ross Laser’s Magnetar Capital is the largest investor among these since it owns $36 million worth of shares.

Disclosure: None. You can also take a look at 16 Best Growth Stocks To Buy According To Hedge Funds and 12 Best Clean Laundry Detergent Brands.

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