10 Biotech Stocks to Buy According to Wall Street Analysts

8. Centessa Pharmaceuticals (NASDAQ:CNTA)

Number of Hedge Fund Holders: 43

Average Upside Potential as of July 30: 90.22%

Centessa Pharmaceuticals (NASDAQ:CNTA) is one of the biotech stocks to buy according to Wall Street analysts. On July 21, Truist initiated coverage of Centessa Pharmaceuticals with a Buy rating and a price target of $30. The firm anticipates significant upside potential for Centessa’s drug candidate, ORX750, in treating narcolepsy and idiopathic hypersomnia, viewing orexin-2 receptor agonists like ORX750 as potentially becoming the new standard of care.

Despite ORX750 being slightly behind competitors in development, Truist believes it can differentiate itself through its safety, efficacy, and convenient dosing. In Q1 2025, Centessa Pharmaceuticals reported a net loss of $26.1 million, which was a notable improvement from the $38 million net loss in the same period of 2024.

Centessa has a diverse pipeline. The company’s lead program, called ORX750, is an orally administered orexin-2 receptor agonist, which is currently in a Phase 2a CRYSTAL-1 study for narcolepsy type 1/NT1, narcolepsy type 2/NT2, and idiopathic hypersomnia/IH. Data from this study across all 3 indications are expected in 2025. Other pipeline assets include SerpinPC for Hemophilia A and B, LB101 for Solid Tumors, MGX292 for Pulmonary Arterial Hypertension/PAH, and other undisclosed assets for Solid Tumors, as well as additional orexin agonists like ORX142 and ORX489 in IND-enabling studies.

Centessa Pharmaceuticals (NASDAQ:CNTA) is a clinical-stage pharmaceutical company that discovers, develops, and delivers medicines.