With everyone being an expert these days, the concept of top analyst biotech picks might seem suspect at first glance. While we depend on Wall Street’s spectrum of expert guidance to establish a frame of reference, they can get some calls embarrassingly wrong. So, why trust analyst-recommended biotech stocks?
I have one answer for you, perhaps the only answer that matters: time savings. That’s right. Before you dive into biotech stocks to buy, you’ve got to conduct a ridiculous amount of research. Essentially, the experts help cut this time expenditure down exponentially.
With best-rated biotech stocks, investors enjoy the confidence of ideas that have been vetted. That doesn’t guarantee Jack, to be clear. However, it’s much more efficient to let the analysts do their work. These folks not only know the equities market but they’ve also studied the biotech space extensively. Plus, they can communicate industry jargon into human language. On that note, below are three top analyst biotech picks.
Legend Biotech (LEGN)
Based in Somerset, New Jersey, Legend Biotech (NASDAQ:LEGN) bills itself as a fully integrated cell therapy company with targeted expertise. Notably, the company focuses on chimeric antigen-receptor CAR T-cells, which represents a compelling platform for oncological research and therapeutics.
According to Precedence Research, the global CAR T-cell therapy market reached a valuation of $3.82 billion last year. Experts project that the segment will expand at a compound annual growth rate (CAGR) of 29.8% between 2023 to 2032. At the culmination of the forecast period, the sector should hit $88.52 billion. That’s a major reason to peg LEGN as one of the biotech stocks to buy.
Another reason of course centers on the topic at hand. Presently, Wall Street analysts peg LEGN as a consensus strong buy. This assessment breaks down as nine buys, one hold and zero sells. In addition, the experts’ average price target lands at $89.22, implying 24% upside potential. Thus, it’s a compelling idea for top analyst biotech picks.
Roivant Sciences (ROIV)
A high-flying example among top analyst biotech picks, Roivant Sciences (NASDAQ:ROIV) has delighted speculators this year. Since the January opener, ROVI gained slightly over 62% of equity value. In the trailing one-year period, shares almost tripled. Based in the U.K., Roivant focuses on applying technology to drug development.
Obviously, its distinct business model has resonated with investors. According to another publication by Precedence Research, the global drug discovery market reached a valuation of $55.46 billion last year. Analysts in the field predict that by 2032, the sector could hit just over $133 billion. Assuming that Roivant continues to keep firing on all cylinders, it’s a promising example among analyst-recommended biotech stocks.
Speaking of which, experts peg ROIV as a consensus strong buy view. It’s an impressive assessment, which breaks down as eight buys, one hold and zero sells. Further, the analysts’ average price target clocks in at $16.17, implying almost 40% upside potential. Thus, ROIV is another solid idea for best-rated biotech stocks.
CRISPR Therapeutics (CRSP)
An exceptionally compelling but controversial name among top analyst biotech picks, CRISPR Therapeutics (NASDAQ:CRSP) is one of the first companies formed to utilize the CRISPR gene-editing platform. While the innovation offered tremendous potential for the treatment of various diseases and conditions, it also raised ethical concerns. To be sure, the platform can’t guarantee 100% safety and it could lead to devastating unintended consequences.
Nevertheless, given the precarious nature of the human condition – a point that was brought home rudely by the Covid-19 pandemic – it’s more than likely that research in the field of gene editing will continue. Specific to the CRISPR platform, the underlying global market may hit $3.4 billion by the end of this year. By 2028, experts project that the space could reach $7.1 billion.
Notably, the Street features a mixed but overall bullish assessment of CRSP, rating it a consensus moderate buy. This view breaks down as eight buys, six holds and one sell. Also, the average price target comes out to $81.40, implying nearly 60% upside potential. Ultimately, it may be one of the best biotech stocks to buy.
On the date of publication, Josh Enomoto did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.