3 ‘Strong Buy’ Stocks With Big Catalysts Ahead

Which are three of the market’s hottest stocks right now? I searched for ‘Strong Buy’ stocks with significant upside potential from the current share price- and these three biopharma stocks easily stand out from the crowd. You can see below the upside in green from the current share price to the average analyst price target.

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So without further ado, let’s dive in now and take a closer look at why top analysts are so bullish on these three trending stocks. You will notice that all the analysts referred to here have four or five-star ratings- because these are the analysts with the most accurate stock picking abilities. For further insights into the market activity on each stock simply click on the hyperlinked tickers:

Strongbridge Biopharma (Nasdaq:SBBP)

  • 3 buy ratings in last three months
  • Average analyst price target indicates 93% upside potential

Biopharma Strongbridge now has two commercial rare disease assets, Keveyis (PPP) and Macrilen (AGHD). Meanwhile, its pipeline product Recorlev comes close behind in pivotal Phase 3 studies for Cushing’s disease. This is a complex condition that can happen when stress hormone cortisol levels are too high.

“The ability of the highly focused, strategic and experienced management team to scale the Keveyis and Macrilen revenues while preparing for Recorlev launch by late 2019E/early 2020E (we assume 2020E) is key to significantly re-rating the company. We believe that management is poised to execute on this strategy and we are bullish on the story” states top Oppenheimer analyst Hartaj Singh.

His buy rating comes with a $12 price target (58% upside potential).

Bear in mind that Singh is one of the Top 200 analysts on TipRanks right now. He scores a 61% success rate and 29.2% average return on his buy-sell stock recommendations.

Aquinox Pharmaceuticals (Nasdaq:AQXP)

  • 4 buy ratings in last three monhts
  • Average analyst price target indicates 69% upside potential

This clinical-stage pharma is discovering and developing novel drug candidates to treat inflammation, inflammatory pain, and blood cancers. A major milestone is fast approaching with top-line results coming out in 3Q18. This could ‘be highlight of company’s arc of existence’ writes top Cantor Fitzgerald analyst William Tanner.

He continues: “We believe the company is well-positioned to bring an important new therapy to the market for treating interstitial cystitis/bladder pain syndrome (IC/BPS) in rosiptor and, if clinical trials are successful, for treating chronic prostatitis/chronic pelvic pain syndrome (CP/CPPS) also.”

Following a ‘hard to beat’ R&D day he reiterated his buy rating with a bullish $28 price target (87% upside potential). He explains that at the meeting, a physician consultant gave an overview of IC/BPS and “it was evident to us that the disease is without proper means to medically manage it and that rosiptor might be able to fill an important void.”

With a four-star TipRanks rating, Tanner is ranked #545 out of almost 4,800 tracked analysts.

Verastem (Nasdaq:VSTM)

  • 3 buy ratings in last three months
  • Average analyst price target indicates 376% upside potential

According to the Street, the market is seriously undervaluing Verastem right now. The company is developing novel drugs targeting cancer stem cells. As you can see analysts are predicting huge upside potential for the stock of almost 400%!

Oppenheimer’s Leah R Cann reiterated her buy rating on March 13 with a $15 price target (346% upside). Cann believes that Verastem will be ready to launch its first product, duvelisib for chronic lymphocytic leukemia (CLL), in 2019. This means the company can start turning a profit in 2020. She explains:

“For a company at Verastem’s stage of development, which is pre-approval, we primarily focus on potential future revenue to value it. Based on our expectation that Verastem will launch its first product in the next few years, we estimate that total revenue will increase to $401.1 million in 2022.”

However, as VSTM is still in its development phase, these estimates do carry a degree of risk. TipRanks reveals that Cann is currently ranked at #379 out of 4,787 analysts. She has a 54% success rate but a relatively high 18.9% average return.

Disclaimer: TipRanks is an independent cloud based service that measures and ranks digitally published financial advice. TipRanks' natural language processing (NLP) algorithms aggregate and ...

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