Oppenheimer analyst Hartaj Singh expects the annual healthcare gatherings in San Francisco at the start of 2023 to provide positive momentum to biotech stocks. However, fundamentals for the biotechnology sector "are still in flux," and two important trends make small- and mid-cap names difficult for investors – financing risk and regulatory complexity, Singh tells investors in a research note. The analyst thinks certain large-caps names will be "safe havens" in the first half of 2023, namely Gilead (GILD), Vertex Pharmaceuticals (VRTX) and Regeneron (REGN). The three offer "unique characteristics" that the stocks likely to outperform in 2023, contends Singh. Gilead consensus estimates are too conservative, Vertex’s profit growth and pipeline are underappreciated, and Regeneron’s base businesses should "shine" in 2023, writes the analyst.
Published first on TheFly
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