13 Small Cap Stocks Analysts Are Bullish On

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1. Tectonic Therapeutic, Inc. (NASDAQ:TECX)

Market Cap: $369.90 million

Analyst Upside: 306.36%

Number of Hedge Fund Holders: 20

Tectonic Therapeutic, Inc. (NASDAQ:TECX) is one of the 13 Small Cap Stocks Analysts Are Bullish On. On June 10, Raymond James resumed coverage of Tectonic Therapeutic, Inc. (NASDAQ:TECX) with an Outperform rating and set a $76 price target. The rating update was accompanied by a broader research note on Biotech names.

The analyst told investors in a research note that risk/reward skews favorably across the sector. Although companies with a higher probability of success (PoS) lead assets result in a higher conviction, the most outsized returns may be attained by highly attractive skews on less de-risked assets.

Raymond James reasoned that for Tectonic Therapeutic, Inc. (NASDAQ:TECX), its lead asset, TX45, offers one of the most attractive risk-reward propositions in the biotech landscape, which is currently experiencing favorable skew and suppressed valuations.

The ongoing Phase 2 by Tectonic Therapeutic, Inc. (NASDAQ:TECX) targets a high unmet need indication, favorably aligning with relaxin’s multi-modal mechanism of action, according to the firm.

Tectonic Therapeutic, Inc. (NASDAQ:TECX) is a clinical-stage biotechnology company that discovers and develops therapeutic proteins and antibodies modulating the activity of G protein-coupled receptors (GPCR). The company develops a proprietary technology platform called GEODe to develop and discover GPCR-targeted biologic medicines.

While we acknowledge the potential of TECX to grow, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than TECX and that has 100x upside potential, check out our report about this cheapest AI stock.

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Disclosure: None.

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