Leerink has restarted coverage on eight large-cap biotech stocks following a prolonged period of share price underperformance. In a new report, analyst Geoffrey Porges explained why now is the time to buy back into biotech, but investors still must be selective.
Porges pointed out that the selloff has sent many top stocks plummeting to or near all-time lows in terms of revenue and earnings multiples.
“This sell off has occurred in an environment of relatively solid operating performance and strong industry fundamentals; we remain very positive about the industry’s research productivity, returns on capital, commercial efficiency and regulatory prospects,” Porges explained.
Many of the large-cap biotech names are currently in transition periods for their business, in which they are making heavy investments in external acquisitions and portfolio diversification. Leerink prefers innovative names that are at the beginning of a growth cycle with focused portfolios and transparent balance sheets.
Leerink names the following Outperform-rated stocks as its top picks:
- Alexion Pharmaceuticals, Inc. ALXN
- Regeneron Pharmaceuticals Inc REGN
- Vertex Pharmaceuticals Incorporated VRTX
- Gilead Sciences, Inc. GILD
In addition, the firm set Market Perform ratings for the following:
- Celgene Corporation CELG
- Biogen Inc BIIB
- Medivation Inc MDVN
- Amgen, Inc. AMGN
Disclosure: The author holds no position in the stocks mentioned.
Image Credit: Public Domain© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
Comments
date | ticker | name | Price Target | Upside/Downside | Recommendation | Firm |
|---|
Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.
