5 Most Promising Mid-Cap Healthcare Stocks According to Hedge Funds

3. Nektar Therapeutics (NASDAQ:NKTR)

Nektar Therapeutics (NASDAQ:NKTR) is one of the 10 most promising mid-cap healthcare stocks according to hedge funds.

On May 11, Wedbush analyst Martin Fan decreased the price target on Nektar Therapeutics (NASDAQ:NKTR) from $95 to $80 while reiterating a Neutral rating. This revision is followed by the recent corporate earnings report, where Nektar has reaffirmed forward-looking guidance across its broader product portfolio.

Additionally, the company has confirmed that by July 2026, it will be initiating the Phase 3 ZENITH-AD program for rezpegaldesleukin, which is used to treat atopic dermatitis. Despite this clinical progression, the analyst is still quite uncertain about the possibility of significant first-line market penetration.

Fan believes that Dupixent’s well-established commercial dominance is a major factor in this cautious approach. Furthermore, within two years of any prospective rezpegaldesleukin launch alternative biosimilars are expected to enter the market, posing a threat to the competitive environment.

On May 8, while retaining an Overweight rating on the stock, Yasmeen Rahimi from Piper Sandler increased the firm’s price target on Nektar Therapeutics (NASDAQ:NKTR) from $105 to $192. The adjustments lead to a highly lucrative upside potential of over 200% at the prevailing level.

The firm noted that Nektar disclosed its first quarter results and provided an update on REZPEG’s Phase 3 ZENITH-AD program design, which will comprise five trials in total. The two biologic-naive AD studies will begin in July 2026, and the first ZENITH-AD readout will occur in mid-2028. Additionally, a third trial with AD patients with biologic experience is included in ZENITH-AD, with commencement taking place some months after biologic naive.

Nektar Therapeutics (NASDAQ:NKTR) is a biopharmaceutical company that discovers and develops drugs targeting immunological dysfunctions. It develops rezpegaldesleukin, NKTR-0165, NKTR-0166, NKTR-422, and NKTR-255. These are used to treat autoimmune disorders, ulcerative colitis, and multiple sclerosis, autoimmune diseases, fibrotic diseases, and solid tumors/large B-cell lymphoma, respectively.

1281292 - 11759070 - 1