As the year draws to a close, it’s once again time to join the age-old practice of picking out the changes that await in the coming year. Wall Street’s stock gurus are hardly immune to this; Every year, they tag their top picks from the stock market to change the calendar, and this year was no exception. Analysts are looking at the post-New Year market landscape and picking out potential winners for investors to consider.
We opened database at TipRanks to see details on two such “top picks”. The pair shares two attributes that are sure to attract attention – a strong Buy rating from analysts’ consensus and plenty of upside potential next year.
89bio, Inc. (ETNB)
We’ll start with a clinical-stage biopharmaceutical company, 89bio. The company has focused on studying serious, chronic conditions that affect the liver and heart, specifically nonalcoholic steatohepatitis, or NASH, a severe liver disease and hypertriglyceridemia, or SHTG , a cardiac metabolic disorder.
89bio currently has only one drug candidate, pegozafermin, that is the subject of two clinical trial research programs, one of these conditions.
The company has announced that it has completed registration for the ENLIVEN Phase 2b trial of pegozafermin against NASH and expects to release top data in Q1 2023.
On the cardiovascular side, 89bio published data from the ENTRIGUE phase 2 pegozafermin trial, which showed significant benefits in triglyceride reduction along with improved glycemic control and reduced liver fat. The company aims to begin a Phase 3 trial of pegozafermin against SHTG in 1H23.
These tests don’t come cheap, but 89bio had $193.3 million in cash as of September 30 of this year. This is set against the combined $27 million in R&D and G&A expenses in the third quarter of 2022.
In a recent article on this stock, analyst Cantor kristen kluska state her reasons for making it ‘top pick’ – and a clear path forward for the stocks. She wrote, “We believe ETNB has one of the strongest short-term volatility opportunities in our coverage, despite a recent strong rally. We are making 89bio the first choice in the ENLIVEN Phase 2b data 1Q23 guideline for pegozafermin (PGZ; glycoPEGylated FGF21 analog) in non-alcoholic steatohepatitis (NASH).”
“We believe 89bio’s current valuation is close to half its cash at this point (the company is actively spending it, however) and doesn’t really attribute much credit to the program’s potential though. there’s a lot of interest,” the analyst continued to add.
Along with her upbeat outlook, Kluska rates ETNB stock at Overweight (i.e. Buy), while her price target, set at $34, implies a strong one-year gain. is 315%. (To see Kluska’s achievements, click here)
Overall, the stock has a consensus rating of Strong Buy, reflecting the recent 6 positive analyst ratings. The stock is currently trading at $8.19 and an average price target of $28 suggests a potential gain of 242% over the next 12 months. (View ETNB stock forecast on TipRanks)
Arvinas (QLVNCH ONLY)
The second stock we will be tapping is Arvinas, a biotech company that studies proteolysis, a new area of clinical research that offers many open avenues to research agents. new therapy. Arvinas is at the clinical stage and is using its proprietary PROTAC platform to design proteolytically targeted mosaics that can be used in the treatment of a variety of debilitating and life-threatening conditions. The company has 11 active studies, three of which are at the clinical trial level.
Arvinas’ leading drug candidate, ARV-471 (co-developed with Pfizer) is being studied for the treatment of metastatic breast cancer – and earlier this week the company released new data from an extensive trial. Phase 2 of VERITAC. Data show a clinical benefit rate of 38%, along with consistently favorable tolerability. The full data release is scheduled for early next month. Arvinas plans to begin two Phase 3 studies of ARV-471 – the first of which is later this year..
The company has two more clinical research tracks. The first of these, on ARV-110, or bavdegalutamide, was a study in the treatment of metastatic castration-resistant prostate cancer (mCRPC). In the upcoming first half of 2023, Arvinas is expected to confirm dosage selection and receive health authority feedback ahead of the Phase 3 global trial, scheduled to begin in the second half of next year. . As for the other drug candidate, ARV-766, Arvinas is preparing to publish Phase 1 dose-escalation trial data, against mCRPC (metastatic resistant prostate cancer), in the second quarter of 2023.
analyst Richard’s Law, from Credit Suisse, which recently updated his profile on Arvinas, writing, “ARVN is now our new ‘Top Pick’… based on the ARV-471’s best-in-class potential with as an estrogen receptor blocker. Furthermore, we are upgrading ARVN to our ‘first choice’ due to the many upcoming catalysts that are likely to drive the share price and the high confidence from ARVN and PFE in the launch of the two studies. pivotal for ARV-471 prior to completion of Ph. 2 .”
Law places a Better rating (i.e. Buy) here, along with an $81 price target that suggests a 105% upside potential in the coming year. (To see Law’s achievements, click here)
With 11 analyst ratings on file, divided into 9 Buy and 2 Hold, Arvinas received a Strong Buy rating from the consensus of analysts on the Street. The average price target of $77.6 represents a strong 96% increase from the current share price of $39.56. (View ARVN stock forecast on TipRanks)
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deny the responsibility: The opinions expressed in this article are those of prominent analysts only. Content is used for informational purposes only. It is very important that you do your own analysis before making any investment.