This Biotech Stock Has 47% Upside, According to 1 Wall Street Analyst


With shares of Iovance Biotherapeutics (NASDAQ: IOVA) soaring by 175% in the last three months, Wells Fargo analyst Yanan Zhu thinks they could still go as much as 47% higher. In fact, on Feb. 20, the analyst raised his price target for the stock from $17 to $22. Yanan wasn’t alone in making a bullish call, either; Goldman Sachs analyst Andrea Tan also hiked her price target significantly, as did several others.

The reason for the spate of price target hikes is doubtlessly the company’s recent victory delivered by the Food and Drug Administration (FDA). On Feb. 16, regulators granted an accelerated approval for Iovance’s lead candidate, a cell therapy for advanced melanoma called Amtagvi.

Bullish catalysts abound for Iovance

Now, the biotech will commercialize its first medicine, generating sales for the first time. Per the consensus estimate by analysts, in 2024 it’s expected to bring in roughly $152 million in revenue. Gaining market share will doubtlessly help to propel its share price upward.

Iovance is also investigating in a late-stage clinical trial whether Amtagvi is useful in treating cervical cancer. If that trial is a success, expect the business to seek an expanded indication as soon as it can, and expect the stock to soar even further.

Iovance’s profitability remains an open question

Regardless of the positive assessments by analysts, there is still (at least) one risk of investing in Iovance. As Amtagvi must be administered by authorized treatment centers and manufactured in a specialized facility, there will be major overhead costs associated with the drug’s rollout. It’s plausible that it will take a long time for the biotech to become profitable, and it’s possible, though unlikely, that it won’t ever make more money than it spends.

Should you invest $1,000 in Iovance Biotherapeutics right now?

Before you buy stock in Iovance Biotherapeutics, consider this:

The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Iovance Biotherapeutics wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.

Stock Advisor provides investors with an easy-to-follow blueprint for success, including guidance on building a portfolio, regular updates from analysts, and two new stock picks each month. The Stock Advisor service has more than tripled the return of S&P 500 since 2002*.

See the 10 stocks

*Stock Advisor returns as of February 20, 2024

Wells Fargo is an advertising partner of The Ascent, a Motley Fool company. Alex Carchidi has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Goldman Sachs Group and Iovance Biotherapeutics. The Motley Fool has a disclosure policy.

This Biotech Stock Has 47% Upside, According to 1 Wall Street Analyst was originally published by The Motley Fool

Source link

About The Author

Scroll to Top