2024 SOHN Conference Stock Pitches

Michelle Ross, StemPoint Capital
Investment Idea: Crinetics Pharmaceuticals (CRNX)

One stock that could nearly double from here on the surge of interest around weight loss drugs and an increased focus on endocrine health is Crinetics Pharmaceuticals, according to Michelle Ross, CIO at StemPoint Capital.

The stock is up nearly 33% year to date.

Crinetics, which develops therapies for endocrine diseases, can tap into a multibillion-dollar potential U.S. market opportunity as it targets therapeutics for Cushing’s Disease and Congenital Adrenal Hyperplasia, Ross said.

Endocrinology is an $8 billion market, but the cumulative market size including the company’s future therapy targets is upwards of $200 billion, which includes estimates for future obesity drugs, the investor said. She has a one-year price target of $88 for the stock, implying 92% upside, while her long-term price target of $339 suggests a whopping 665% upside for the company.

Ross said she expects significant outperformance for years to come, competing with the likes of Eli Lilly and Novo Nordisk, as the “obesity market moves from an injectable to an oral pill.”

During the last three years, Crinetics delivered 200% outperformance, as compared to the SPDR S&P Biotech ETF (XBI), she said. This year, Crinetics is up by more than 31%, whereas XBI has risen 1.8%.