10 Best Biotech Stocks to Buy According to Analysts

In this article, we will be taking a look at the 10 Best Biotech Stocks to Buy According to Analysts.

Biotechnology is enjoying one of its strongest years in recent times, which is mostly fueled by a rebound in capital markets, rising merger activity, and renewed investor confidence. Investors are finding these tendencies appealing, especially in early-stage biotech firms with cutting-edge drug pipelines.

According to a June 4 CNBC article, global biopharma mergers and acquisitions are predicted to reach their highest level since the pre-pandemic peak seven years ago. According to PitchBook data, dealmaking has already exceeded $106 billion via 201 transactions in 2026. By year’s end, the sector is predicted to be close to $250 billion if the current enthusiasm persists. The average deal value has increased to $527.3 million from $365 million in 2025 as pharmaceutical companies accelerate acquisitions to strengthen their pipelines and prevent approaching patent expirations.

Oncology, metabolic disease, and central nervous system medicines have drawn a lot of attention, and strategic acquisitions in the $1 billion to $5 billion area have dominated activity. The biotech ETF index XBI has gained more than 50% over the last 12 months as the IPO market has reopened, thanks to the strengthening market environment, which has also improved investor optimism.

On June 9, 2026, Reuters revealed that Parabilis Medicines had raised its U.S. IPO from 25 million to 33.3 million shares, aiming for a valuation of up to $2.3 billion. This was a clear indication of this recovery. More than 150 patients have received doses of the company’s top candidate, zolucatetide, which is presently being tested for various solid tumors. Reuters reported on June 8, 2026, that Johnson & Johnson agreed to buy Firefly Bio for $1 billion in cash to extend its oncology pipeline through the company’s protein-degrading platform targeting KRAS-driven malignancies, demonstrating the continued strength of consolidation.

With that said, let’s take a look at the best biotech stocks.

Our Methodology

For our methodology, we screened for biotech stocks with an analyst upside of at least 20%. From this list, we selected companies with the most recent news and developments and ranked them in ascending order based on their analyst upside as of June 24.

Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Insider Monkey’s quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 599.2% since May 2014, beating its benchmark by 372 percentage points (see more details here).

Here is our list of the 10 best biotech stocks to buy according to analysts.

10. MapLight Therapeutics, Inc. (NASDAQ:MPLT)

Price Target Upside: 25.16%

MapLight Therapeutics, Inc. (NASDAQ:MPLT) is one of the best biotech stocks on this list.

TheFly reported on June 24 that Raymond James initiated coverage of MPLT with a Strong Buy rating and a $46 price target. The firm highlighted Cobenfy as a significant advancement in schizophrenia treatment but noted challenges related to treatment persistence. Raymond James sees potential upside ahead of the Phase 2 ZEPHYR trial readout for ML-007C-MA, expected by mid-August. The firm also identified MPLT’s Alzheimer’s disease psychosis program as a potential value driver, despite limited investor attention toward Alzheimer ’s-focused opportunities.

Separately, on June 22, MapLight Therapeutics, Inc. (NASDAQ:MPLT) announced topline findings from its Phase 2 IRIS trial evaluating ML-004 in autism spectrum disorder (ASD). The study enrolled 161 participants and assessed multiple measures, including social communication and irritability outcomes. While the trial did not achieve its primary endpoint related to social communication improvement at Week 12, a prespecified analysis showed ML-004 produced clinically meaningful improvements in irritability among adolescents with moderate or higher baseline irritability compared with placebo. The treatment also demonstrated positive trends on clinician-rated irritability measures. ML-004 was generally well tolerated, with mostly mild-to-moderate adverse events and no severe safety concerns reported in treated participants.

MapLight Therapeutics, Inc. (NASDAQ:MPLT) is a clinical-stage biopharmaceutical company developing targeted treatments for central nervous system disorders using advanced neurotechnologies.

9. Rhythm Pharmaceuticals, Inc. (NASDAQ:RYTM)

Price Target Upside: 33.72%

Rhythm Pharmaceuticals, Inc. (NASDAQ:RYTM) is one of the best biotech stocks on this list.

TheFly reported on June 16 that Canaccord analyst Whitney Ijem increased the price target on RYTM to $151 from $143 while maintaining a Buy rating. The update followed a positive interim review from the Phase 2 study of setmelanotide in Prader-Willi syndrome (PWS). Canaccord highlighted continued BMI improvements with longer treatment exposure, with reductions reaching 3.06% at six months compared with 1.84% at three months. The firm also noted that 8 of 10 patients with moderate to severe baseline hyperphagia achieved a clinically meaningful reduction of at least 7 points on the HQ-CT assessment.

On June 15, Rhythm Pharmaceuticals, Inc. (NASDAQ:RYTM) announced new data presentations from ENDO 2026 highlighting results from its MC4R agonist programs in acquired hypothalamic obesity, Bardet-Biedl syndrome, and Prader-Willi syndrome. The company reported positive findings showing improvements in weight-related outcomes and hyperphagia across multiple patient populations. Data included long-term setmelanotide results in acquired hypothalamic obesity, real-world outcomes in BBS patients, and Phase 2 results in PWS. The findings supported the potential of MC4R pathway therapies to address rare neuroendocrine disorders with limited treatment options and demonstrated continued progress across RYTM’s development programs.

Rhythm Pharmaceuticals, Inc. (NASDAQ:RYTM) is a commercial-stage biopharmaceutical company developing precision medicines for rare genetic obesity and neuroendocrine disorders.

8. MoonLake Immunotherapeutics (NASDAQ:MLTX)

Price Target Upside: 41.38%

MoonLake Immunotherapeutics (NASDAQ:MLTX) is one of the best biotech stocks on this list.

TheFly reported on June 22 that Clear Street maintained its Buy rating and $70 price target on MLTX. The firm highlighted SLK’s potential in hidradenitis suppurativa following the company’s investor event focused on the therapy’s development and commercialization strategy. Clear Street noted that SLK’s profile in HS remains highly competitive and could support a significant commercial opportunity. The firm also stated that the Biologics License Application submission remains expected by September 30, with management continuing to view the possibility of priority review.

Moreover, on June 23, MoonLake Immunotherapeutics (NASDAQ:MLTX) announced the pricing of its underwritten public offering, including 9 million Class A ordinary shares at $20.00 per share and pre-funded warrants for up to 1 million additional shares at $19.9999 per warrant. The offering is expected to generate approximately $200 million in gross proceeds before fees and expenses. MLTX also provided underwriters with a 30-day option to purchase an additional 1.5 million Class A ordinary shares. The company plans to use the proceeds to support research, development, pre-commercialization, and commercialization activities for sonelokimab, if approved, and general corporate purposes.

MoonLake Immunotherapeutics (NASDAQ:MLTX) is a clinical-stage biopharmaceutical company developing innovative therapies for inflammatory skin and joint diseases, led by Sonelokimab, a next-generation IL-17 inhibitor.

7. Definium Therapeutics, Inc. (NASDAQ:DFTX)

Price Target Upside: 43.73%

Definium Therapeutics, Inc. (NASDAQ:DFTX) is one of the best biotech stocks on this list.

TheFly reported on June 23 that Robert W. Baird analyst Christopher Chen increased the price target on DFTX to $57 from $37 while maintaining an Outperform rating. The update followed the company’s Emerge trial results, which prompted the firm to revise its valuation model.

Separately, on June 22, Definium Therapeutics, Inc. (NASDAQ:DFTX) announced positive topline findings from the Emerge Phase 3 study evaluating DT120 ODT 100 microgram as a single-dose treatment in adults with major depressive disorder. The randomized, double-blind, placebo-controlled trial achieved its primary endpoint, showing a statistically significant and clinically meaningful improvement in depressive symptoms based on the change in MADRS total score at Week 6. Patients receiving DT120 ODT recorded an LS mean MADRS change of -13.3 compared with -5.2 for placebo, resulting in an LS mean difference of -8.1 points. The treatment also demonstrated rapid activity, with a placebo-adjusted LS mean reduction of -14.2 points at Week 1, and maintained durable effects with a -7.3-point reduction at Week 12.

Definium Therapeutics, Inc. (NASDAQ:DFTX) is a clinical-stage biopharmaceutical company developing next-generation therapies for psychiatric and neurological disorders using psychedelic and psychoplastogenic medicine.

6. Zymeworks Inc. (NASDAQ:ZYME)

Price Target Upside: 46.57%

Zymeworks Inc. (NASDAQ:ZYME) is one of the best biotech stocks on this list.

TheFly reported on June 9 that Truist Securities initiated coverage of ZYME with a Buy rating and a $28 price target, down from $40. The firm highlighted ZYME as a balanced investment opportunity, supported by its royalty-based business model and expanding oncology pipeline that could provide long-term growth potential. Truist also pointed to pipeline assets, including Pasritamig in metastatic castration-resistant prostate cancer, as potential contributors due to upcoming clinical milestones.

Separately, on June 14, Zymeworks Inc. (NASDAQ:ZYME) presented updated clinical findings from the dose-escalation phase of its ongoing Phase 1 trial assessing ZW191, an antibody-drug conjugate targeting folate receptor alpha. The data were presented at the European Society for Medical Oncology (ESMO) Gynaecological Cancers Congress 2026. Results showed encouraging anti-tumor activity in platinum-resistant ovarian cancer patients across different FRalpha expression levels. ZW191 achieved a confirmed objective response rate of 78.6% in FRalpha-positive patients and 47.4% in FRalpha-negative patients across evaluated dose levels. Median duration of response had not yet been reached, while median progression-free survival was 7.6 months across ovarian and endometrial cancer groups. Dose optimization enrollment was completed, with tolerability results supporting further clinical development.

Zymeworks Inc. (NASDAQ:ZYME) is a clinical-stage biotechnology company developing next-generation cancer therapies, including multispecific antibodies and antibody-drug conjugates (ADCs).

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