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.
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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).
11. Alvotech (NASDAQ:ALVO)
Analyst Upside: 83.06%
Number of Hedge Fund Holders: 9
Alvotech (NASDAQ:ALVO) is one of the 13 Best Pharma Stocks to Buy According to Wall Street Analysts. On July 1, Alvotech (NASDAQ:ALVO) and Advanz Pharma announced a commercialization agreement to distribute and supply AVT10, a biosimilar candidate to Cimzia, in Europe.
The agreement is expected to support Alvotech’s (NASDAQ:ALVO) strategic position in the biosimilar market while allowing increased access to high-quality biologics in Europe. This could potentially affect the market share of the current treatments in the chronic rheumatic diseases sector.
Alvotech (NASDAQ:ALVO) is a biotechnology company that develops and manufactures biosimilar medicines. Headquartered in Luxembourg, the company operates in the following geographical segments: Europe, North America, Asia, and Other.
10. Harrow, Inc. (NASDAQ:HROW)
Analyst Upside: 89.81%
Number of Hedge Fund Holders: 19
Harrow, Inc. (NASDAQ:HROW) is one of the 13 Best Pharma Stocks to Buy According to Wall Street Analysts. On June 10, William Blair analyst Lachlan Hanbury-Brown initiated coverage of Harrow, Inc. (NASDAQ:HROW) with an Outperform rating and a $63 fair value estimate.
The analyst told investors in a research note that Harrow, Inc. (NASDAQ:HROW) began operations as a compounding pharmacy business but has since acquired an expanded portfolio of branded therapies with an attractive margin profile and growth, resulting in its expansion into the branded pharmaceutical segment.
The firm contended that Harrow, Inc.’s (NASDAQ:HROW) recently launched access and affordability program, Vevye Access for All, “is rapidly accelerating growth.” It believes that the company is still early in the product adoption, and a complementary growth driver for this segment could be the recent reintroduction of Triesence.
Harrow, Inc. (NASDAQ:HROW) develops, produces, and sells innovative medications. The company’s operations are divided into two segments: Pharmaceutical Compounding and Pharmaceutical Drug Development. The Pharmaceutical Compounding segment manages the operations of the ImprimisRx business.
9. Corcept Therapeutics Incorporated (NASDAQ:CORT)
Analyst Upside: 90.88%
Number of Hedge Fund Holders: 33
Corcept Therapeutics Incorporated (NASDAQ:CORT) is one of the 13 Best Pharma Stocks to Buy According to Wall Street Analysts. On June 2, Corcept Therapeutics Incorporated (NASDAQ:CORT) announced pivotal data from its Phase 3 ROSELLA trial of relacorilant plus nab-paclitaxel in patients with platinum-resistant ovarian cancer at the American Society of Clinical Oncology Annual Meeting.
According to the release, ROSELLA met its primary endpoint of improved progression-free survival according to assessment by blinded independent central review (PFS-BICR). A 30% reduction in disease progression risk was recorded in patients who received relacorilant in addition to nab-paclitaxel chemotherapy as compared to those who received nab-paclitaxel monotherapy only.
The results also showed that relacorilant plus nab-paclitaxel was well-tolerated and exhibited a comparable safety profile between treatment arms. Adding relacorilant did not cause a rise in patients’ safety burden. In fact, patients who were administered relacorilant plus nab-paclitaxel experienced a lower incidence of ascites (5.3%) compared to those who received nab-paclitaxel alone (10.5%). The occurrence of abdominal paracenteses during treatment was also lower for the former patients.
Corcept Therapeutics Incorporated (NASDAQ:CORT) is a biopharmaceutical company that develops and commercializes therapies that adjust the effects of cortisol, a hormone that regulates various bodily functions. The company’s flagship product, Korlym, is FDA-approved for the treatment of Cushing’s syndrome, a disorder characterized by excessive cortisol production.
8. Travere Therapeutics, Inc. (NASDAQ:TVTX)
Analyst Upside: 100.74%
Number of Hedge Fund Holders: 42
Travere Therapeutics, Inc. (NASDAQ:TVTX) is one of the 13 Best Pharma Stocks to Buy According to Wall Street Analysts. On June 16, Leerink Partners analyst Joseph Schwartz reiterated the firm’s bullish stance on Travere Therapeutics, Inc. (NASDAQ:TVTX), assigning it a Buy rating and a $42 price target. The analyst supported the positive rating with Travere Therapeutics, Inc.’s (NASDAQ:TVTX) positive trajectory, supported by its product Filspari, which attained complete approval for the treatment of IgA nephropathy (IgAN) in 2023.
When considered in conjunction with the updated treatment guidelines, this approval has resulted in a notable growth in Filspari’s market presence. Although competition is anticipated to rise in the IgAN market, the firm anticipates Filspari to hold a competitive market edge due to its full approval status, as other treatments only have accelerated approval.
Schwartz also reasoned that Travere Therapeutics, Inc. (NASDAQ:TVTX) is looking into expansion opportunities in focal segmental glomerulosclerosis (FSGS), and a supplemental New Drug Application is under review by the FDA. While such processes have inherent regulatory risks, the analyst expressed optimism about Travere Therapeutics, Inc.’s (NASDAQ:TVTX) prospects because of its strategic positioning and management’s confidence.
Guggenheim analyst Vamil Divan also reiterated a Buy rating on Travere Therapeutics, Inc.’s (NASDAQ:TVTX) on July 2 with a price target of $47.00.
Travere Therapeutics, Inc. (NASDAQ:TVTX) is a biopharmaceutical company that identifies, develops, and delivers therapies for rare kidney and metabolic diseases. Its product, FILSPARI (sparsentan), reduces proteinuria in individuals with primary IgAN at risk of rapid disease progression. The company’s commercial products, Thiola and Thiola EC, treat cystinuria, a rare genetic cystine transport disorder.
7. Cytokinetics, Incorporated (NASDAQ:CYTK)
Analyst Upside: 105.56%
Number of Hedge Fund Holders: 64
Cytokinetics, Incorporated (NASDAQ:CYTK) is one of the 13 Best Pharma Stocks to Buy According to Wall Street Analysts. Piper Sandler analyst Yasmeen Rahimi maintained a Buy rating on Cytokinetics, Incorporated (NASDAQ:CYTK) on June 4 and set a price target of $107.00.
JPMorgan analyst Tessa Romero also gave Cytokinetics, Incorporated (NASDAQ:CYTK) a rating update on June 9, lowering the firm’s price target to $53 from $71 while keeping an Overweight rating on the shares.
The firm stated that it updated its revenue forecasts for aficamten following recent management commentary that the launch of Camzyos is a realistic cadence for an obstructive hypertrophic cardiomyopathy launch. It added that the deciding factor for the attitude of investors and physicians towards the drug’s potential adoption would be the label.
The firm believes that aficamten is a “really good drug” to treat obstructive hypertrophic cardiomyopathy, boasting a differentiated profile compared to Camzyos. This holds especially true when considering dosing, safety, and pharmacology. It thus contended that the data to date supports approval.
Cytokinetics, Incorporated (NASDAQ:CYTK) is a biopharmaceutical company that discovers, develops, and commercializes muscle inhibitors to treat diseases that affect muscle performance. It develops small-molecule drug candidates, particularly engineered to affect muscle function and contractility. Its clinical-stage drug candidate portfolio includes omecamtiv mecarbil, a novel cardiac myosin activator, CK-136, a novel cardiac troponin activator, reldesemtiv, a novel fast skeletal muscle troponin activator, aficamten, a novel cardiac myosin inhibitor, and CK-3772271, a novel cardiac myosin inhibitor.
6. Beam Therapeutics Inc. (NASDAQ:BEAM)
Analyst Upside: 106.55%
Number of Hedge Fund Holders: 28
Beam Therapeutics Inc. (NASDAQ:BEAM) is one of the 13 Best Pharma Stocks to Buy According to Wall Street Analysts. On July 1, H.C. Wainwright analyst Patrick Trucchio reiterated a Buy rating on Beam Therapeutics Inc. (NASDAQ:BEAM) and set a price target of $80.00. The analyst based the optimistic rating on the company’s gene editing pipeline, especially with their base editing therapies.
Beam Therapeutics Inc. (NASDAQ: BEAM) is making considerable progress in several areas, including BEAM-101 for sickle cell disease, BEAM-302 for alpha-1 antitrypsin deficiency, and the ESCAPE platform for non-genotoxic conditioning. This progress has generated considerable investor interest in Beam Therapeutics Inc. (NASDAQ:BEAM), as it reflects the company’s potential in both ex vivo and in vivo clinical programs, with commercialization readiness and a clear regulatory strategy.
The analyst further reasoned that upcoming milestones are anticipated to drive additional value for Beam Therapeutics Inc. (NASDAQ:BEAM), including the initiation of a Phase 1 trial for BEAM-103 and the completion of patient dosing in the BEACON trial for BEAM-10. The company has established proof-of-concept and a fully integrated manufacturing platform, which, according to the analyst, fully equips it to deliver innovative genetic medications and supports the Buy rating.
Beam Therapeutics Inc. (NASDAQ:BEAM) is a biotechnology company that develops precision genetic medicines through base editing, a technology that allows efficient and predictable single-base changes at targeted genomic sequences. The company’s lead programs focus on sickle cell disease and alpha-1 antitrypsin deficiency.
Beam Therapeutics Inc. (NASDAQ:BEAM) is advancing programs in other genetic diseases as well, along with oncology and immunology. Its primary programs include BEAM-101, Engineered Stem Cell Antibody Paired Evasion (ESCAPE), BEAM-302, BEAM-301, and BEAM-201.
5. Legend Biotech Corporation (NASDAQ:LEGN)
Analyst Upside: 117.80%
Number of Hedge Fund Holders: 34
Legend Biotech Corporation (NASDAQ:LEGN) is one of the 13 Best Pharma Stocks to Buy According to Wall Street Analysts. On July 2, analyst Mitchell Kapoor from H.C. Wainwright reiterated a Buy rating on Legend Biotech Corporation (NASDAQ:LEGN) with a $75.00 price target.
The analyst highlighted the company’s promising outlook, supported by its CARVYKTI. Another factor suggesting the treatment’s favorable risk-benefit profile is the FDA approval of a supplemental BLA for CARVYKTI that eliminates the need for a risk evaluation and mitigation strategy.
The analyst expects this factor, coupled with the updated monitoring requirements, to expedite the launch of CARVYKTI in the US market. In addition, the extensive experience of physicians with CARVYKTI, despite the recommendation by the European Medicines Agency to include warnings regarding potential immune-mediated enterocolitis, suggests that the product’s benefits outweigh its risks.
Legend Biotech Corporation (NASDAQ:LEGN) is a clinical-stage company that develops, discovers, manufactures, and commercializes novel therapies for oncology and other indications. It develops advanced cell therapies across an elaborate range of technology platforms. The company operates in the US, China, and other geographical segments.
4. CG Oncology, Inc. (NASDAQ:CGON)
Analyst Upside: 135.16%
Number of Hedge Fund Holders: 24
CG Oncology, Inc. (NASDAQ:CGON) is one of the 13 Best Pharma Stocks to Buy According to Wall Street Analysts. On June 17, Morgan Stanley raised the firm’s price target on CG Oncology, Inc. (NASDAQ:CGON) to $56 from $52, while maintaining an Overweight rating on the shares.
The firm told investors in a research note that although the non-muscle invasive bladder cancer space has undergone recent and anticipated approvals, the space is comprehensive enough to accommodate multiple players. It thus considers cretostimogene to be meaningfully differentiated by its safety data and durability, along with having “best-in-disease potential” that supports an optimistic rating for the company.
CG Oncology, Inc. (NASDAQ:CGON) is a clinical biopharmaceutical company that develops and commercializes bladder-sparing therapeutics for bladder cancer. Its product cretostimogene is initially in clinical development for the treatment of Non-Muscle Invasive Bladder Cancer (NMIBC).
3. Dynavax Technologies Corporation (NASDAQ:DVAX)
Analyst Upside: 148.42%
Number of Hedge Fund Holders: 38
Dynavax Technologies Corporation (NASDAQ:DVAX) is one of the 13 Best Pharma Stocks to Buy According to Wall Street Analysts. On June 23, Citizens JMP analyst Roy Buchanan reiterated a Buy rating on Dynavax Technologies Corporation (NASDAQ:DVAX) and set a price target of $31.00.
The company reported record net product revenue for HEPLISAV-B in fiscal Q1 2025, reaching $65 million and showing a 36% year-over-year growth. HEPLISAV-B is the first and only adult vaccine for hepatitis B approved in the US, the UK, and the EU. Its total estimated market share in the US rose to around 43%, compared to around 41% in fiscal Q1 2024.
Dynavax Technologies Corporation (NASDAQ:DVAX) also announced plans for the new pandemic influenza adjuvant program and Lyme disease vaccine programs to enter clinical development in 2025 and 2027, respectively. In addition, the company expects top-line results in Part 1 of the Phase 1/2 shingles vaccine trial by fiscal Q3 2025.
Dynavax Technologies Corporation (NASDAQ:DVAX) is a biopharmaceutical company that discovers, develops, and commercializes novel vaccines and immuno-oncology therapeutics. The company’s product pipeline includes HEPLISAV-B, a vaccine for all known subtypes of the hepatitis B virus in adults aged 18 and above.
2. Amicus Therapeutics, Inc. (NASDAQ:FOLD)
Analyst Upside: 163.81%
Number of Hedge Fund Holders: 47
Amicus Therapeutics, Inc. (NASDAQ:FOLD) is one of the 13 Best Pharma Stocks to Buy According to Wall Street Analysts. On June 25, Amicus Therapeutics, Inc. (NASDAQ:FOLD) announced that Japan’s Ministry of Health, Labour and Welfare (MHLW) approved Pombiliti + Opfolda as a treatment of late-onset Pompe disease (LOPD) in adult patients.
Pombiliti + Opfolda is a two-component therapy, comprising Pombiliti, a recombinant human GAA enzyme, and Opfolda, an enzyme stabilizer.
The approval was based on clinical data from the Phase 3 pivotal study (PROPEL), which is the only trial in LOPD that studies real-world populations of both ERT-naïve and ERT-experienced participants in a controlled setting. With MHLW’s approval, Pombiliti + Opfolda now holds approval in the US, UK, EU, Canada, Switzerland, Japan, and Australia.
Amicus Therapeutics, Inc. (NASDAQ:FOLD) discovers, develops, and delivers medicines to treat metabolic diseases. Its product portfolio includes the first and only approved oral precision medicine to treat Fabry disease, a clinical-stage treatment paradigm for Pompe disease, and a rare disease gene therapy portfolio.
1. Immunovant, Inc. (NASDAQ:IMVT)
Analyst Upside: 165.33%
Number of Hedge Fund Holders: 37
Immunovant, Inc. (NASDAQ:IMVT) is one of the 13 Best Pharma Stocks to Buy According to Wall Street Analysts. On June 26, Sam Slutsky, an analyst from LifeSci Capital, maintained a Buy rating on Immunovant, Inc. (NASDAQ:IMVT), keeping the associated price target at $50. He based the rating on the notable market opportunity for the company’s IMVT-1402 for the treatment of Graves’ disease, which is a leading cause of hyperthyroidism and has considerable unmet medical need.
The disease impacts around a million patients in the US, and current treatments typically render a majority of patients uncontrolled or intolerant. Since alternative therapies for the disease also have considerable drawbacks, the analyst reasoned that IMVT-1402 has potential as a novel, disease-modifying therapy. It reduces pathogenic IgG autoantibodies to target the disease’s root cause, and positive proof-of-concept data from a first-generation anti-FcRn supports the therapy’s efficacy.
The analyst further reasoned that feedback from key opinion leaders highlights the significant need and demand for such targeted treatments, painting a positive picture for Immunovant, Inc. (NASDAQ:IMVT). Apart from IMVT-1402’s dual effects in Graves’ disease and thyroid eye disease, the company’s ongoing trials further support the optimistic rating.
Immunovant, Inc. (NASDAQ:IMVT) develops treatments for autoimmune diseases. Its product pipeline includes batoclimab and IMVT-1402. Both are novel antibodies targeting the neonatal fragment crystallizable receptor (FcRn).
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