Top 10 ADR Stocks To Buy According to Hedge Funds

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1. Merus NV (NASDAQ:MRUS)

Number of Hedge Fund Holders: 54

Stock Upside Potential: 65.89%

Based in the Netherlands, Merus NV (NASDAQ:MRUS) is a company focused on the research and development of antibody-based cancer treatments; it is working on a range of antibody therapies, with its Zenocutuzumab (MCLA-128) being a key candidate in phase 2 clinical trials aimed at treating individuals with metastatic breast cancer and prostate cancer that has become resistant to hormone therapy.

According to hedge funds, Merus NV (NASDAQ:MRUS)’s competitive edge as one of the top 10 ADR stocks to buy stems from its strategic collaboration that strengthens its edge in the industry. It is currently working with Incite Corporation on researching, discovering, and developing bispecific antibodies. It is also working with Eli Lilly and Company (Lilly) to develop up to three CD3-engaging T-cell re-directing bispecific antibody therapies.

Merus NV (NASDAQ:MRUS) also received a new equity investment of $25 million from Gilead Sciences to discover novel antibody-based trispecific T-cell engagers using the patented Triclonics® platform. The company boasts about $846.4 million in cash to finance its R&D until 2028.

Revenue from working with other companies for the quarter ending June 30, 2024, fell by $3.2 million when compared to the same period a year earlier, mainly due to a drop in income from reimbursements of $1.5 million and the reduction of deferred revenue by $1.7 million.

Currently, Merus NV (NASDAQ:MRUS) is rated as Buy with an average price target of $88.50, implying a 65.89% upside potential from current levels; according to Insider Monkey, 54 out of 912 hedge funds tracked held stakes in the company as of the end of the second quarter. Egen Atkinson And Michael Kramarz’s Commodore Capital, which had a $189.34 million stake in Merus N.V. (NASDAQ:MRUS) at the end of June, was the company’s biggest shareholder.

The top 10 ADR stocks to buy according to hedge funds offer some of the best opportunities for diversifying an investment portfolio beyond US companies. However, given that the artificial intelligence arms race is just but starting, there are under-the-radar AI stocks trading at highly discounted valuations that hold greater promise for anyone looking to diversify their portfolio. If you are looking for an AI stock that is more promising than the top activist investment plays, check out our report about the cheapest AI stock.

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