8 Most Undervalued Healthcare Stocks to Buy According to Analysts

3. Genmab A/S (NASDAQ:GMAB)

Price Target Upside: 40%

Genmab A/S (NASDAQ:GMAB) develops innovative antibody-based therapies for cancer and other serious diseases. It is developing ground-breaking medicines in oncology and other fields with a portfolio of commercialized medications that includes EPKINLY, TEPKINLY, and Tivdak, as well as a strong pipeline that includes Epcoritamab and tisotumab vedotin.

The main sources of Genmab A/S (NASDAQ:GMAB)’s income are its marketed medications, especially EPKINLY and TIVDAK. Strong adoption in the US and Japan helped the company’s EPKINLY reach $281 million in sales in 2024, including $78 million in Q4 alone. By the end of 2026, three crucial Phase 3 readouts are anticipated, and its potential peak sales are projected to surpass $3 billion. TIVDAK is the world standard of therapy for advanced cervical cancer, with sales of $131 million in 2024, including $38 million in Q4. In 2025, approvals are expected in Europe and Japan.

As Genmab A/S (NASDAQ:GMAB)’s revenue continues to climb, analysts recognize its significant long-term growth potential, placing it among the most undervalued stocks in the biotech sector. Sales of EPKINLY and TIVDAK are a significant part of the recurring revenues, which make up 95% of the total projected revenue, and they are responsible for 34% of the company’s anticipated revenue increase in 2025. In total, the marketed medicines category accounted for 29% of the company’s 2024 revenue increase.