Wall Street Predicts Potential 47% to 73% Upside for Two High-Flying Stocks

Wall Street Predicts Potential 47% to 73% Upside for Two High-Flying Stocks

Whether you realize it or not, for over a year now, selecting growth stocks that are performing well has been much easier than usual. After climbing 43% in 2023, the Nasdaq Composite The index is still up 39% over the past 12 months.

Despite such a rise for the major stock index most associated with growth stocks, investment bank analysts who track the biopharmaceutical industry expect more gains from two standout companies.

Wall Street Predicts Potential 47% to 73% Upside for Two High-Flying Stocks

Image source: Getty Images.

Viking Therapeutics

Actions of Viking Therapeutics (NASDAQ:VKTX) are up about 275% in 2023, but Wall Street analysts think the rise isn’t over yet. Consensus price target on the clinical-stage biotech stock suggests a 47% gain could be in store.

Viking Therapeutics’ stock soared in February after the company announced surprisingly positive results from a Phase 2 trial with an anti-obesity candidate called VK2735. Viking’s candidate is similar to Elie LillyTirzepatide, the active ingredient in Mounjaro and Zepbound.

Investigators randomized 174 patients to receive a placebo or one of four doses of VK2735. Patients who received the highest dose achieved an average weight reduction of 14.7% after 13 weeks, compared to an average weight reduction of 1.7% in the placebo group.

It’s still early, but the VK2735’s performance appears competitive with Lilly’s tirzepatide. Wall Street Analysts expect tirzepatide sales to exceed 50 billion dollars per year. If Viking’s candidate continues to produce impressive clinical trial results, a deep-pocketed pharmaceutical giant could be tempted to make a juicy buyout offer that would send the stock even higher.

Before you bet all your chips on Viking Therapeutics, it’s important to realize that it could be more than a year before it has approved products to sell. Despite this unattractive timeline, the company’s market cap has reached $7 billion at recent prices.

Viking Therapeutics stock could climb much higher, but any signs of trouble in upcoming clinical trial results could lead to serious losses. If you want to take a chance on this stock, make it a very small part of a diversified portfolio.

Iovance Biotherapy

Actions of Iovance Biotherapy (NASDAQ:IOVA) have more than tripled in the past six months, but Wall Street expects further gains. The consensus price target on the stock implies a further 73% upside by this time next year.

Iovance’s stock is up sharply because the Food and Drug Administration (FDA) approved the company’s first cancer treatment in February. Amtagvi is a first-in-class treatment for skin cancer patients, made from immune cells that naturally surround and attack tumors called tumor-infiltrating lymphocytes.

Amtagvi was granted accelerated approval to treat patients with advanced melanoma who have relapsed after treatment with Keytruda or a similar drug. This is a difficult population to treat. However, the therapy shrank tumors in 23 of 73 evaluable patients.

Amtagvi received accelerated approval based on tumor response rates. However, to remain marketable, Iovance must show the FDA that it provides a long-term survival benefit. A decent tumor response rate suggests that subsequent trials can demonstrate the necessary benefit, but success is far from guaranteed.

Iovance is also developing a lung cancer treatment similar to Amtagvi, called LN-145. Like its predecessor, LN-145 is made from lymphocytes infiltrating a patient’s tumor that are modified to recognize surface proteins specific to the patient’s tumors.

Iovance has already won accelerated approval for its first drug, but it is arguably riskier than Viking Therapeutics. At recent prices, Iovance boasts a sizable market cap of $4.3 billion, although sales of complex cancer cell therapies tend to underperform pre-launch expectations. It’s probably best to tread lightly with this title until there are successful initial launch numbers for its first drug.

Should you invest $1,000 in Viking Therapeutics right now?

Before buying Viking Therapeutics stock, consider this:

THE Motley Fool Stock Advisor The analyst team has just identified what they think is the 10 best stocks for investors to buy now…and Viking Therapeutics was not one of them. The 10 selected stocks could produce monster returns in the years to come.

Equity Advisor provides investors with an easy-to-follow plan for success, including portfolio building advice, regular analyst updates, and two new stock picks each month. THE Equity Advisor The service has more than tripled the performance of the S&P 500 since 2002*.

See the 10 values

*Stock Advisor returns March 25, 2024

Cory Renauer has no position in any of the stocks mentioned. The Motley Fool posts and recommends Iovance Biotherapeutics. The Motley Fool has a disclosure policy.

2 Booming Growth Stocks That Could Climb Another 47% to 73%, According to Wall Street was originally published by The Motley Fool

Source Reference

Latest stories