Today, we will look at 5 stocks that analysts are highly bullish about in March 2024. Analysts have recently given a Buy rating to these biotechnology stocks and see over 100% upside share price potential in the next twelve months. Coincidentally, all these companies are pre-revenue, clinical-stage biotech companies with the potential to make meaningful progress on drugs in the coming years. You can scan the TipRanks’ Analyst Top Stocks tool to search for more such stocks that analysts favor.
As a prudent investor, it is advisable to consider the stock ratings of Wall Street analysts before considering investment in any specific company. Analysts rate stocks based on their thorough company research and years of industry knowledge. Their research reports are based on fundamental/financial analysis and include earnings projections, valuation metrics, and price target forecasts. With the help of these, analysts rank stocks as Buy, Hold, or Sell.
Let us look at the five stocks that we selected with the help of TipRanks’ Analyst Top Stocks tool.
#1 Larimar Therapeutics Inc. (NASDAQ:LRMR)
Pennsylvania-based Larimar Therapeutics is engaged in the discovery and development of treatments for complex rare diseases that currently have insufficient or no treatments available. Its initial focus is on Friedreich’s Ataxia (FA), a genetic, progressive, neurodegenerative movement disorder. Larimar’s drugs include a proprietary protein replacement therapy platform that intends to deliver the missing proteins inside a cell to treat diseases.
On March 14, Larimar posted its Q4 FY23 results, with earnings missing estimates. In Q4, the company posted a loss of $0.30 per share, five cents worse than analysts’ forecasts and higher than last year’s loss. The extended loss was due to higher research and development expenses related to manufacturing costs, consulting expenditures, and clinical costs.
Importantly, in February, Larimar announced positive top-line progress on its four-week, placebo-controlled Phase 2 dose exploration study of nomlabofusp (CTI-1601) in patients with FA. Also, Larimar raised net proceeds of roughly $161.6 million through a public offering of common stock.
What is the Price Target for Larimar Therapeutics?
Following the Q4 print and encouraged by the news of positive Phase 2 data, LifeSci Capital analyst Cory Jubinville reiterated a Buy rating on LRMR with a price target of $27 (210.3% upside).
Similarly, JMP Securities analyst Jonathan Wolleben maintained a Buy rating and set a price target of $25 (187.4% upside) on LRMR stock.
With four unanimous Buys, LRMR has a Strong Buy consensus rating on TipRanks. The average Larimar Therapeutics share price forecast of $21.75 implies 150% upside potential from current levels.
#2 Monte Rosa Therapeutics (NASDAQ:GLUE)
Boston-based Monte Rosa Therapeutics develops highly selective molecular glue degrader (MGD) medicines for treating cancer and serious autoimmune and inflammatory diseases, among others. The company’s QuEEN platform enables to rapidly identify protein targets and molecular glue degrader (MGD) product candidates.
In Q4 FY23, the company posted a net loss of $0.58 per share, lower than the prior year period but significantly higher than the consensus loss of $0.39 per share. Nonetheless, Monte Rosa is making meaningful progress on its pipeline of multiple solid drug candidates, with the potential to report positive top-line results.
What is the Price Target for Monte Rosa?
Following the earnings, GLUE stock received Buy ratings from two leading analysts, reflecting the potential for growth going forward.
With four unanimous Buys, GLUE stock has a Strong Buy consensus rating on TipRanks. The average Monte Rosa share price forecast of $16 implies 149.6% upside potential from current levels.
#3 AnaptysBio Inc. (NASDAQ:ANAB)
California-based AnaptysBio is focused on delivering innovative immunology therapeutics with its immune cell modulators, including two checkpoint agonists for autoimmune and inflammatory diseases.
On March 11, AnaptysBio reported its Q4 FY23 results with a net loss of $1.59 per share, one cent better than analysts’ consensus estimated loss. The company recorded Collaboration revenue of $9 million from its ongoing multiple therapeutic antibodies licensed to GlaxoSmithKline (NYSE:GSK) for immune-oncology.
Notably, the company is enrolling patients for three of its ongoing Phase 2 trials related to treating atopic dermatitis (AD), rheumatoid arthritis (RA), and ulcerative colitis (UC).
Is AnaptysBio Stock a Buy, Sell, or Hold?
Impressed with AnaptysBio results, Wedbush analyst David Nierengarten upgraded ANAB stock to Buy from Hold and also lifted the price target to $34 (45% upside) from $20.
On TipRanks, ANAB stock commands a Strong Buy consensus rating backed by five Buys and one Hold rating. The average AnaptysBio share price forecast of $54.75 implies 133.5% upside potential from current levels.
#4 Olema Pharmaceuticals Inc. (NASDAQ:OLMA)
Olema is focused on the discovery, development, and commercialization of a transformational generation of targeted therapies for women’s cancers. The company’s discoveries aim to improve the outcomes for women living with cancer.
In its Q4 FY23 results reported on March 11, Olema’s net loss of $0.49 per share improved meaningfully from the prior year’s $0.65 per share loss but came in one cent more than the consensus. Olema has also fully enrolled its 60-patient Phase 2 combination studies of palazestrant with ribociclib and palbociclib to treat breast cancer.
Is Olema Pharmaceuticals a Buy?
Jefferies analyst Michael Yee lifted the price target on OLMA to $30 (159.7% upside) from $25 while keeping the Buy rating. The analyst is encouraged by the constant progress on drug trials and the expected results from the 60-patient Phase 2 studies.
Six other analysts echo the same sentiment on OLMA stock, awarding it a Strong Buy consensus rating on TipRanks. The average Olema Pharmaceuticals share price target of $25 implies 116.5% upside potential from current levels.
#5 89bio, Inc. (NASDAQ:ETNB)
89bio focuses on developing innovative treatments to cure liver and cardiometabolic diseases. The company’s lead candidate, pegozafermin, is an investigational drug that is being evaluated for treating metabolic dysfunction-associated steatohepatitis (MASH) and severe hypertriglyceridemia (SHTG).
In the Q4 FY23 results, released on February 29, 89Bio reported a net loss of $0.50 per share, higher than the prior-year figure of $0.48 per share and the consensus of $0.49 per share. Also, the company completed the follow-on offering in Q4 2023, generating gross proceeds of $172.5 million.
Is 89bio a Good Stock to Buy?
On March 14, Bank of America Securities analyst Geoff Meacham laid out a bullish view for ETNB shares with his Buy rating and $30 (121.9% upside) price target. Meacham expects ETNB stock to trade in a positive direction following the FDA’s (Food and Drug Administration) approval of a competitor’s drug. The analyst says that the news is a “win for the entire MASH space.” The news also pushed ETNB shares up 7.2% in pre-market trading on March 18.
With four Buys versus one Hold rating, ETNB has a Strong Buy consensus rating on TipRanks. The average 89bio share price target of $28 implies 107.1% upside potential from current levels.
Ending Thoughts
The five companies discussed above have the best upside potential based on the consensus price targets of top-ranked Wall Street analysts. These financial analysts are ranked based on TipRanks’ proprietary formula, including the success rates of their ratings and the average return earned on each of them. The Top Analysts have each earned a five-star ranking, thanks to the accuracy and profitability of their ratings over time. Investors can consider the addition of these biotech stocks to their portfolios to earn lucrative long-term returns. To learn more about TipRanks’ Top ranking analysts, visit TipRanks’ Top Wall Street Analysts page.
