In this article, we will look at the 13 Best Pharma Stocks to Buy According to Wall Street Analysts.
On June 24, Jared Holz, Mizuho’s healthcare strategist, appeared on CNBC’s ‘Fast Money’ to talk about competition in the obesity drug space. He stated that he doesn’t “love” the biotech space, considering that there are a number of things that the sector still needs to clean up.
However, he also stated that when one considers just the revenue degradation at the pharmaceutical level and what these biotechs offer, there appears to be a significant need to beef up mergers and acquisitions (M&A) at the pharmaceutical level. This holds true even if one doesn’t believe that the assets that are out there are much superior to what the pharma sector may have in the pipeline.
READ ALSO: 13 Cheap Mid-Cap Stocks to Add to Your Portfolio and 11 Best Strong Buy Stocks to Invest in Now.
According to him, there is a considerable need for some sort of appreciation, and almost all of the players in the sector need to do something in terms of assets.
With these trends in view, let’s look at the 13 best pharma stocks to buy according to Wall Street analysts.
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Our Methodology
We used Finviz to make a list of pharma stocks and selected the top 13 with the highest analyst upside potential. We also added the number of hedge fund holders for each stock as of Q1 2025, sourcing the hedge fund sentiment data from Insider Monkey’s database. The list is sorted in ascending order of analyst upside potential.
Note: All data was sourced on July 3.
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. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 373.4% since May 2014, beating its benchmark by 218 percentage points (see more details here).
13 Best Pharma Stocks to Buy According to Wall Street Analysts
13. Axsome Therapeutics, Inc. (NASDAQ:AXSM)
Analyst Upside: 74.10%
Number of Hedge Fund Holders: 44
Axsome Therapeutics, Inc. (NASDAQ:AXSM) is one of the 13 Best Pharma Stocks to Buy According to Wall Street Analysts. On July 3, Morgan Stanley analyst Sean Laaman assumed coverage of Axsome Therapeutics, Inc. (NASDAQ:AXSM) with an Overweight rating and a $190 price target. The firm stated that the base case for the rating is the expected on-time supplemental New Drug application Submission for AXS-05 in Alzheimer’s Disease Agitation. According to the analyst, it has a high probability of regulatory success and may lead to a potential $900 million in sales by 2030.
He further stated that the continued launch progress of Auvelity in major depressive disorder is another positive factor for Axsome Therapeutics, Inc. (NASDAQ:AXSM). The analyst told investors in a research note that this growth trajectory is anticipated to continue, supported by market penetration strategies and an expanded sales force.
Axsome Therapeutics, Inc. (NASDAQ:AXSM) is a commercial-stage biopharmaceutical company that develops and delivers therapies for central nervous system conditions with limited treatment options. Its two commercial products and development programs include Auvelity and Sunosi. Auvelity treats major depressive disorder (MDD), and Sunosi is an oral medication for the treatment of excessive daytime sleepiness in patients with narcolepsy or obstructive sleep apnea.
12. Apellis Pharmaceuticals, Inc. (NASDAQ:APLS)
Analyst Upside: 77.19%
Number of Hedge Fund Holders: 43
Apellis Pharmaceuticals, Inc. (NASDAQ:APLS) is one of the 13 Best Pharma Stocks to Buy According to Wall Street Analysts. On July 1, analyst Judah Frommer from Morgan Stanley raised the firm’s price target on Apellis Pharmaceuticals, Inc. (NASDAQ:APLS) to $26.00 from $25.00 while maintaining a Hold rating on the stock. Frommer attributed the rating to the company’s market position and recent financial strategies.
He cited the company’s significant royalty purchase agreement with Sobi, securing up to $300 million and including a $275 million upfront payment, stating that it would slash Sobi’s royalty obligations on Aspaveli sales by 90%. This would result in immediate financial benefits for Apellis and may even ease investor concerns regarding the company’s profitability.
Despite this positive development, Frommer maintained a cautious outlook for Apellis Pharmaceuticals, Inc. (NASDAQ:APLS) due to its future prospects. He stated that while the anticipated regulatory decisions from the FDA and CHMP and the launches of Empaveli/Aspaveli in new indications are significant events, they bring in as much uncertainty as confidence in the company’s market potential.
Apellis Pharmaceuticals, Inc. (NASDAQ:APLS) is a commercial-stage biopharmaceutical company that discovers, develops, and commercializes novel therapeutic compounds for treating diseases with unmet needs. Its product portfolio primarily includes EMPAVELI and SYFOVRE. SYFOVRE treats geographic atrophy secondary to age-related macular degeneration (GA), while EMPAVELI treats paroxysmal nocturnal hemoglobinuria (PNH).
