Top 11 Small Cap Stocks to Buy with Biggest Upside Potential

6. Arrowhead Pharmaceuticals, Inc. (NASDAQ:ARWR)

Market Cap: $1.93 billion

Analyst Upside: 198.78%

Number of Hedge Fund Holders: 34

Arrowhead Pharmaceuticals, Inc. (NASDAQ:ARWR) is a biopharmaceutical company that develops medicines to treat intractable diseases by silencing the genes causing them. Its preclinical stage drug candidates are ARO-ANG3, ARO-AAT, ARO-APOC3, ARO-HIF2, ARO-HSD, ARO-Lung2, ARO-COV, and ARO-ENaC.

On March 10, analyst Patrick Trucchio from H.C. Wainwright reiterated a Buy rating on Arrowhead Pharmaceuticals, Inc. (NASDAQ:ARWR) and set a $80.00 price target. The analyst said the company holds a promising future outlook because of its complement disease program. Its Phase 1/2 trial of ARO-C3 delivered positive results for treating complement-mediated renal diseases. It exhibited a notable decrease in complement activity and proteinuria, reflecting its potential as a potentially blockbuster therapy. The data showed that ARO-C3 did not include severe adverse events and was well-tolerated, with its durability highlighting a competitive advantage with less frequent dosing than other therapies.

The analyst also said that Arrowhead Pharmaceuticals, Inc. (NASDAQ:ARWR) boasts a robust pipeline with other promising candidates as well, including ARO-CFB, which addresses non-renal complement-mediated diseases. The company has a strategic approach to the advancement of its candidates, and despite market competition and risks of clinical development, ARO-C3 and other products in its pipeline hold the potential to address unmet medical needs, supporting the buy rating.