Healthcare Business

5 Very Undervalued Large Cap Biotech Stocks That Could Explode in 2021

Analysts in general are calling for significant upside for Biogen. Credit Suisse has the highest price target out of the group at $375, along with an Outperform rating. SVB Leerink has a price target of $342, and in July Morgan Stanley lifted its price target to $357.

Biogen stock closed most recently at $272.51, in a 52-week range of $219.70 to $374.99.

Royalty Pharma

After a high-flying initial public offering, Royalty Pharma PLC (NASDAQ: RPRX) shares have flamed out and hit new lows. It is still worth about $24 billion, but analysts may be getting discouraged here, which could lead to some robust targets being trimmed. The consensus on last look was above $50, compared with a less than $40 price now. The stock did trade at $56 or so for a few minutes back in June (after the IPO priced at $44).

That said, Royalty Pharma is hardly a true biotech, and not even a true pharma stock. The New York-based outfit is simply an acquirer of biopharmaceutical royalties, and it funds innovation in the biopharmaceutical industry for stakes or royalties. The company has royalty streams from Atripla, Humira, Neulasta, Neupogen, Remicade, Rituxan, Tecfidera, Trikafta, Truvada, Tysabri, Xtandi and many more.

Royalty Pharma stock closed at $38.84 on Wednesday, in a post-IPO range of $38.70 to $56.50. The consensus price target is $52.29.

Gilead Sciences

Acquisitions and partnerships haven’t helped Gilead Sciences Inc. (NASDAQ: GILD), which has remained unloved for the better part of the past five years. Even the controversial hydroxychloroquine has been shouted down. At the most recent closing price of $64.51 per share, the consensus analyst target is still $77.75, which is less than the 52-week high of $85.97.

Barron’s even reported in August that Gilead’s COVID-treatment sales could top $3 billion. Cantor Fitzgerald and Piper Sandler have above-consensus targets of $84 and $83, respectively. SVB Leerink had the highest target on the street at $95, which implies an upside of 47% or so from Wednesday’s closing price.

Regeneron Pharmaceuticals

After its would-be COVID-19 drug partnership with Sanofi failed, Regeneron Pharmaceuticals Inc. (NASDAQ: REGN) has come back down from its highs. At a little over $571 a share, it is now more than $100 under its consensus, and there are other drugs going in its favor. Regeneron has a market cap of just over $60 billion.

Despite the Sanofi partnership for Kevzara failing, the drugmaker partnered with Roche last month to make and supply COVID-19 antibody cocktails. Regeneron already has signed a $450 million deal with the U.S. government under the Operation Warp Speed program.

It is important not to count Regeneron out yet, especially when Goldman Sachs has the highest price target on Wall Street for the stock. The investment house’s Buy rating comes with an $800 price target. A few other notable analyst calls are SunTrust’s Buy rating and $750 price target, as well as the Outperform rating and $725 price target from both Credit Suisse and Oppenheimer.

Regeneron stock last closed at $571.15, in a 52-week range of $271.37 to $664.64. The consensus price target is $674.63.

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