Healthcare Business

10 Speculative Biotech and Biohealth Stocks With Massive Analyst Upside Calls

Amicus Therapeutics

Amicus Therapeutics Inc. (NASDAQ: FOLD) was started as Buy and was assigned a $10 price objective at Merrill Lynch on May 18. The prior close was at $6.61. Its most recent closing price was $8.84. Amicus has a consensus price target north of $12 and a 52-week range of $4.99 to $18.83.

Merrill Lynch called the company’s migalastat an oral small molecule therapy for Fabry disease, where current IV standard of care represents more than $1 billion in total market potential. The firm said that migalastat should launch in the European Union upon full approval by June 1, 2016. An update on the U.S. drug application is expected in mid-2016, and its pipeline includes potential wins for Epidermolysis Bullosa and Pompe disease.

Arrowhead Pharmaceuticals

Arrowhead Pharmaceuticals Inc. (NASDAQ: ARWR) was started with a Buy rating and an upside price target all the way up at $12 at Chardan Capital. This was versus a $4.99 prior close. We question just how much this call was given attention because there was almost no price change and volume was light on May 19 when the call was made. Then it closed up 8% at $5.42 on the following day, despite the call being 24 hours old. Either way, this is exponential upside, if it can come about.

AVEO Pharmaceuticals

AVEO Pharmaceuticals Inc. (NASDAQ: AVEO) was started as Overweight with a $1.70 price target at Piper Jaffray on May 19. AVEO’s prior closing price was $0.88, the same price on Friday’s closing bell. Investors, or speculators in this case, need to consider that AVEO has a market cap that is barely $50 million. Its 52-week range is $0.82 to $2.90, and there is a supposed consensus analyst target of $2.35 but that is because of an FBR Capital Markets target being $3.00 with an Outperform rating issued in March.

Depomed

Depomed Inc. (NASDAQ: DEPO) had a solid week, rising from under $18.00 on Monday to close up at $19.92. Depomed was reiterated as Buy with a $28 fair value at Janney on May 19 after news that a court extended a 30-month stay for its Nucynta. The Janney report said:

As expected, the District Court has ordered the 30-month stay preventing an at-risk launch by the generic filers be extended until the earlier of its written decision, or September 30, 2016. While not unexpected, having the court formally enjoin the generic filers from an at-risk launch eliminates a potential overhang on DepoMed’s stock while the company and its investors await the final decision of the court, or a settlement agreement, with the generic filers.


Editas Medicine

Editas Medicine Inc. (NASDAQ: EDIT) has become a rather interesting stock for many speculative biotech investors, with gene editing and ties to funding from Bill Gates. It also has been quite volatile. Its shares were trading higher on Monday after news of its quarterly results and after news that it inked a $5 million deal to get into cystic fibrosis with the Cystic Fibrosis Foundation. One of the most bullish views recently issued was by Janney, with a $48 fair value estimate. The Janney report said:

Editas reported quarter end cash of $229 million, guiding to funds for at least the next 24 months. R&D and SG&A were higher than our expectations and we’re adjusting our projections to better reflect extrapolation from the first quarter. No new updates on the preclinical/clinical front and we suspect that IP developments may be the main share drivers through the year, though that could change towards year end when we could get more visibility on clinical plans, possibly including with Juno.

Editas closed up 1.2% at $33.25 on Friday. It has a post-IPO range of $12.57 to $43.99, and it has a $37.00 consensus price target.

Geron

Geron Corp. (NASDAQ: GERN) may have been the boulevard of broken dreams in the past, but Janney started off May with a big call on the stock. Its Buy rating came with a $6.50 fair value estimate, when shares were around $2.70 at the time. Just keep in mind that they had the same rating and same target when Geron was trading above $4.00, but it is rare to see upside like this projected.