10 Biotech Stocks Trading at Deep Discounts to Analyst Target Prices

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(Written by Alexander Crawford. Target price data sourced from Thomson/First Call (via Yahoo! Finance))

Biotech companies deal with many uncertainties, and that directly translates to uncertainty when choosing among their stocks.

Will the FDA approve this company’s new drug? Is an approval already priced into the stock?

These are common questions often with complicated answers. Sometimes it helps to seek guidance from analysts.

With that in mind, we screened the roughly 160 US-traded biotech companies for those with market caps above $50 million that are trading at the most significant discounts to mean analysts target prices.

Of course, analyst prices tend to be inflated most of the time, so we ran a screen that used the most pessimistic analyst target price as the benchmark for our analysis.

In addition, we only focused on companies that have more than 5 analyst target prices (to make sure we only focus on companies that have decent analyst coverage).

Do you think these stocks will meet their analyst targets?

Use this list as a starting point for your own analysis.

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1. Access a thorough description of all companies mentioned
2. Compare analyst ratings for all stocks mentioned below
3. Visualize annual returns for all stocks mentioned

List sorted by current upside implied by target price.

1. Incyte Corporation (INCY): Focuses on the discovery and development of proprietary small molecule drugs for hematologic and oncology indications, and inflammatory and autoimmune diseases. Market cap of $1.79B. Of the 12 analysts that have set a target price on the stock, the lowest price target stands at $19.00. This implies a current upside of 33.80% from current levels around $14.20

2. Array BioPharma, Inc. (ARRY): Focuses on the discovery, development, and commercialization of small molecule drugs to treat patients afflicted with cancer and inflammatory diseases in North America, Europe, and the Asia Pacific. Market cap of $131.15M. Of the 5 analysts that have set a target price on the stock, the lowest price target stands at $3.00. This implies a current upside of 30.43% from current levels around $2.30

3. Inhibitex Inc. (INHX): Focuses on the development of differentiated anti-infective products to prevent or treat serious infections, primarily shingles and chronic infections caused by hepatitis C virus (HCV). Market cap of $300.25M. Of the 10 analysts that have set a target price on the stock, the lowest price target stands at $5.00. This implies a current upside of 30.21% from current levels around $3.84

4. Xenoport, Inc. (XNPT): Focuses on developing and commercializing internally discovered product candidates that utilize the body's natural nutrient transport mechanisms to enhance the therapeutic benefits of drugs. Market cap of $194.57M. Of the 8 analysts that have set a target price on the stock, the lowest price target stands at $7.00. This implies a current upside of 27.50% from current levels around $5.49

5. Jazz Pharmaceuticals, Inc. (JAZZ): Develops and commercializes products for neurology and psychiatry primarily in the United States. Market cap of $1.68B. Of the 5 analysts that have set a target price on the stock, the lowest price target stands at $51.00. This implies a current upside of 26.43% from current levels around $40.34

6. BioCryst Pharmaceuticals, Inc. (BCRX): Designs, optimizes, and develops small-molecule pharmaceuticals that block key enzymes involved in infectious diseases, cancer, and inflammatory diseases. Market cap of $128.68M. Of the 5 analysts that have set a target price on the stock, the lowest price target stands at $3.50. This implies a current upside of 22.81% from current levels around $2.85

7. 3SBio Inc. (SSRX): Engages in the research, development, manufacture, and distribution of pharmaceutical products in the People's Republic of China. Market cap of $240.46M. Of the 5 analysts that have set a target price on the stock, the lowest price target stands at $13.00. This implies a current upside of 17.97% from current levels around $11.02

8. XOMA Ltd. (XOMA): Engages in the discovery, development, and manufacture of therapeutic antibodies to treat inflammatory, autoimmune, infectious, and oncological diseases. Market cap of $55.34M. Of the 5 analysts that have set a target price on the stock, the lowest price target stands at $2.00. This implies a current upside of 17.65% from current levels around $1.70

9. Achillion Pharmaceuticals, Inc. (ACHN): Engages in the discovery, development, and commercialization of treatments for infectious diseases. Market cap of $419.02M. Of the 11 analysts that have set a target price on the stock, the lowest price target stands at $7.00. This implies a current upside of 16.47% from current levels around $6.01

10. Exact Sciences Corporation (EXAS): Focuses on developing a molecular diagnostic screening technology for the early detection and prevention of colorectal pre-cancer and cancer. Market cap of $407.43M. Of the 10 analysts that have set a target price on the stock, the lowest price target stands at $9.00. This implies a current upside of 16.28% from current levels around $7.74. 



The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of The NASDAQ OMX Group, Inc.



This article appears in: Investing , Investing Ideas , Stocks , Technology


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