Buy biotech stocks?  Analysts see this enzyme stock up 118%

Buy biotech stocks? Analysts see this enzyme stock up 118%

Codexis, a biotechnology company that develops and manufactures enzymes for pharmaceutical products, was among the top performers in the industry last month, up more than 10%. Wall Street is bullish on the California-headquartered company that makes the enzymes for Pfizer’s oral antiviral treatment for Covid-19; All eight equity analysts covering the stock give it a buy rating. Its median target price indicates a potential upside of 118% over the 12 months, according to FactSet. The stock was trading around $6 on Thursday. The company will report the results of its Phase 1 study of CDX-7108, an enzyme developed in collaboration with Nestle Health Science to treat people with an impaired pancreas. Analysts at Piper Sandler said in a note to clients on Jan. 18 that if results are positive, “some of the focus could shift from the quarterly numbers to the longer-term value of therapeutic opportunities.” Codexis began the drug trial in late 2021 and will report its fourth-quarter results in March. The 22-year-old company isn’t the only biotech to get positive reviews from Wall Street. Six other global biotech stocks — part of the WisdomTree BioRevolution Index and screened by CNC Pro — are up an average of 10% or more over the past month. The consensus price target for some of the stocks points to triple-digit gains over the next year. These stocks are covered by at least five analysts and each has a buy rating. Growth in earnings per share is also expected for the coming fiscal year: At the top is Precigen, a US company that focuses on the development of gene and cell therapies. Results from a PRGN-2012 trial, a treatment that targets tumors in the airways, are expected to be released in the coming days. The company is also hosting a virtual event for investors on Jan. 24. “We believe PRGN’s R&D event will validate the key value propositions underscoring PRGN-2012,” Cantor Fitzgerald analysts said in a Jan. 12 note to clients have a therapeutic vaccine in recurrent respiratory papillomatosis, they added. Although rare, analysts say RRP is currently treated with costly, distressing, and potentially risky surgical procedures. Other companies on the list include London-listed Oxford Nanopore Technologies and Genus, which analysts expect will rise more than 40% over the next 12 months. Clinical diagnostics company Bio-Rad Lab and Sweden-based IVF specialist Vitrolife are the other stocks analysts expect to rise.