5 Top-Rated Biotech Stocks With Big Upside Potential

Last week marked the best week for biotechs since the start of 2017. The sector spiked following some unexpected positive rhetoric from President Trump suggesting an executive order on drug prices rather than regulatory control. However, while there is uncertainty ahead, the rally in biotech stocks is far from over. We wanted to find five biotech stocks that present a compelling investing opportunity. Given the risk inherent in the sector it is important to pick stocks wisely- and choosing stocks recommended by top analysts is one way of pinpointing top biotech stocks.

How to find top-rated biotech stocks

We ordered the results by upside potential as this is a crucial indicator of how well the stock can perform in the next 12 months.

Now let’s see which five top biotech stocks have the Street’s seal of approval:

1. Mediwound (MDWD) – on June 27 the news broke that BARDA (the Biomedical Advanced Research and Development Authority) is investing $22 million in Mediwound’s burn treatment, as part of a $112 million agreement signed in 2015. “We view this as an excellent source of non-dilutive funding and an external commitment that highlights the value and benefits of NexoBrid” commented Oppenheimer analyst Jay Olson. On June 26, he reiterated his buy rating and $10 price target. This comes in just below the average analyst price target of $10.25- which suggests incredible upside potential over the next year of over 47%.

2. BioDelivery Sciences (BDSI) – as the name suggests, this biotech focuses on improving drug delivery methods for pain management and addiction medicine. Top analysts are predicting a whopping 51% upside from the current $2.80 share price. On June 23, four-star H.C.Wainwright analyst Corey Davis reiterated his buy rating with a $4 price target (42% upside). He says “We are encouraged by the latest positive prescription trends [for Belbuca], as well as by this week’s news that CVS/Caremark has provided favorable access at least through 2020, and by today’s announcement of Canadian approval [for Belbuca].” Belbuca will now be launched in Canada in early 2018.

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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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