8 Must-Buy Small Cap Stocks to Buy

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6. Climb Bio Inc (NASDAQ:CLYM)

Number of Hedge Fund Holders: 20

Year-To-Date Performance: 135.20%

Market Capitalization: $601.38 million

Stock Upside: 94.22%

Climb Bio Inc (NASDAQ:CLYM) is one of the must-buy small cap stocks to buy. On April 7, BTIG reaffirmed its Buy rating and $8 price target on Climb Bio Inc (NASDAQ:CLYM).

The investment bank made the move after Climb announced it had received FDA Fast Track Designation for its lead drug candidate, budoprutug. Budoprutug is a drug that targets CD19 monoclonal antibodies. It is designed to seek out and deplete specific immune cells called B cells, which are responsible for producing the harmful autoantibodies that power rare kidney diseases like primary membranous nephropathy, or pMN.

BTIG’s reason for staying bullish is that budoprutug is not starting from scratch scientifically. In the analysts’ view, the drug is preceded and de-risked by off-label use of anti-CD20 monoclonal antibodies. Put simply, doctors have already been using a related class of drugs to treat similar conditions, and that this provides a clinical reference point that lowers budoprutug’s development risk. The analysts argued that because budoprutug is building on a proven foundation, its mechanism should deliver deeper B-cell depletion. This could translate to faster and more durable disease remission for patients, the analysts noted.

BTIG noted that there are approximately 75,000 pMN patients in the US and currently no FDA-approved treatments for the disease. In other words, budoprutug would effectively be entering an open market with no direct competition if it reaches approval.

Climb Bio Inc (NASDAQ:CLYM) is a clinical-stage biotechnology company. It is focused on developing therapies for immune-mediated diseases, with a pipeline centered on monoclonal antibodies targeting B-cell-driven conditions.

While we acknowledge the potential of CLYM 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 CLYM and that has 100x upside potential, check out our report about the cheapest AI stock.

Click to continue reading and see the 5 Must-Buy Small Cap Stocks to Buy.

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