When every rally attempt fails, market veterans know that it is likely that the path of least resistance for the stock market is lower, at least for the meantime. The recent preliminary reading of negative gross domestic product for the first quarter (the first such print since the second quarter of 2020) is a good sign that things could get worse before they get better.
The highest inflation in 41 years, the ongoing war between Russia and Ukraine, supply-chain issues and a host of additional woes continue to pressure the equity markets. Many investors are getting nervous, especially with the Nasdaq already dipping in and out of bear market status.
We decided to screen the Goldman Sachs Conviction List looking for ideas that aggressive investors with longer time horizons and a higher risk tolerance may want to consider. While there could still be downside to as low as 3,700 on the S&P 500, perhaps farther, the time to buy is when there is the proverbial blood in the street. That may not be far off.
While all five of the following stocks are Buy rated and are the top picks at Goldman Sachs, it is important to remember that no single analyst report should be used as a sole basis for any buying or selling decision.
This Wall Street favorite is a solid bio-pharma play. BioMarin Pharmaceuticals Inc. (NASDAQ: BMRN) develops and commercializes innovative biopharmaceuticals for serious diseases and medical conditions.
The company’s commercial products include the following:
- Vimizim is an enzyme replacement therapy for the treatment of mucopolysaccharidosis (MPS) IV type A, a lysosomal storage disorder.
- Naglazyme is a recombinant form of N-acetylgalactosamine 4-sulfatase for patients with MPS VI.
- Kuvan is a proprietary synthetic oral form of 6R-BH4 that is used to treat patients with phenylketonuria (PKU), an inherited metabolic disease.
- Palynziq is a PEGylated recombinant phenylalanine ammonia lyase enzyme that is delivered through subcutaneous injection to reduce blood Phe concentrations.
- Brineura is a recombinant human tripeptidyl peptidase 1 for the treatment of patients with ceroid lipofuscinosis type 2, a form of Batten disease.
- Voxzogo is a once daily injection analog of c-type natriuretic peptide for the treatment of achondroplasia.
- Aldurazyme is a purified protein designed to be identical to a naturally occurring form of the human enzyme alpha-L-iduronidase.
In addition, the company develops valoctocogene roxaparvovec, an adeno-associated virus vector, which is in Phase 3 clinical trial for the treatment of patients with severe hemophilia A. BMN 307 is an AAV5 mediated gene therapy that is in Phase 1/2 clinical trial to normalize blood Phe concentration levels in patients with PKU, and BMN 255 is in Phase 1/2 clinical trial for treating primary hyperoxaluria.
The Goldman Sachs price target of $169 compares with a lower $116.39 consensus target for BioMarin Pharmaceuticals stock and Thursday’s closing print of $76.38. Hitting the Goldman Sachs target would be a 112% gain.
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