While most of Wall Street focuses on large and mega-cap stocks, as they provide a degree of safety and liquidity, many investors are limited in the number of shares they can buy. Many of the biggest public companies, especially the technology giants, trade in the hundreds, all the way up to over $1,000 per share or more. At those steep prices, it’s pretty hard to get any decent share count leverage.
Many investors, especially more aggressive traders, look at lower-priced stocks as a way to not only make some good money but to get a higher share count. That can really help the decision-making process, especially when you are on to a winner, as you can always sell half and keep half.
Goldman Sachs is the premier investment bank in the world, so we screened the firm’s outstanding research database and found four biotech stocks trading under the $10 level that could provide investors with some solid upside potential.
While all four are rated Buy at Goldman Sachs, they are much better suited for aggressive accounts. It is important to remember that no single analyst report should be used as a sole basis for any buying or selling decision.
This clinical-stage biotechnology company recently received some big patent news. Axcella Health Inc. (NASDAQ: AXLA) researches and develops endogenous metabolic modulators for the treatment of complex diseases and improving health in the United States.
Its candidates include:
- AXA1665 for use in treating overt hepatic encephalopathy
- AXA1125 and AXA1957 to treat non-alcoholic steatohepatitis
- AXA2678 to treat muscle atrophy
- AXA4010 to target multiple biological pathways to support normal structures and functions of the blood
Last month, Axcella announced that the issuance of new patents has resulted in two lead product candidates (AXA1665 and AXA1125) now being covered under U.S. patents for both composition of matter and methods of use. These are the first patents related to Axcella’s family of applications for AXA1665, the firm’s product candidate to reduce the risk of overt hepatic encephalopathy recurrence.
Goldman Sachs has a large $8 price target on the shares, which compares with the much higher Wall Street consensus target of $18. Shares slipped below $5 early last week but recovered by week’s end.
This is a small-cap oncology-focused biopharmaceutical company. CytomX Therapeutics Inc. (NASDAQ: CTMX) develops a novel class of investigational antibody therapeutics based on its Probody technology platform for the treatment of cancer.
The U.S. company’s product candidates in the clinical stage include:
- CX-072, a Probody therapeutic targeting programmed cell death ligand 1 immuno-oncology target
- CX-2009, a Probody drug conjugate (PDC) against CD166 novel drug target
- BMS-986249, a CTLA-4 Probody therapeutic drug for the treatment of metastatic melanoma
- CX-2029, a PDC targeting CD71 for solid tumors
- BMS-986288, an anti-CTLA-4 Probody drug for solid tumors
CytomX has strategic collaborations with AbbVie Ireland Unlimited, Amgen, Bristol-Myers Squibb, ImmunoGen, Pfizer and Astellas Pharma to develop Probody therapeutics.
The Goldman Sachs price target is a massive $18, while the consensus target is $14.30. The shares have traded mostly between $8 and $9 for the past several weeks.