The healthcare sector may have done poorly in the past couple of years, but analysts are bullish on it right now. “Just two weeks into 2024, the health care sector has pulled the plug on the significant delay in 2023,” Citi said in a recent note. Higher interest rates were a key headwind, he noted. But Citi now expects the environment to improve. “We think healthcare investors can climb that wall of worry in 2024. We expect the Federal Reserve to ease its tight monetary policies over time. And we’re already seeing a stabilization in biotech funding.” “For those dealing with the twin unstoppable trends of longevity and innovation, however, the recession of 2023 has created opportunities. Many of the issues that have held back healthcare stocks are transitory, in our view, creating a favorable setup for the sector’s potential outperformance. 2024,” the bank added. Analysts singled out biotech as one of the few sectors to watch. Growth stocks, such as technology and biotech stocks, typically benefit from interest rate cuts. To look for biotech stocks that did well last year and that analysts are still bullish on, CNBC Pro looked at the iShares Biotechnology ETF and the SPDR S&P Biotech ETF. These were the criteria used: Growth of more than 20% in 2023. Possible upward trend to the average target value of more than 40%. Over 70% market rating. Seven or more analysts cover the stock. These 10 stocks were among those that appeared on the screen. Four stocks stood out for averaging more than 100% upside potential: Humacyte , Marinus Pharmaceuticals , Olema Pharmaceuticals , and Ovid Therapeutics . A fifth stock — Biomea Fusion — posted more than 200% upside to its average price target and a 75% buy rating from analysts. Biomea first came to the fore when Citi gave a more than 800% upside to a note last November, as the bank said its treatments have “potential advantages” over others. Three other stocks on the screen received 100% buy ratings from analysts: Ardelyx , Cabaletta Bio and Rocket Pharmaceuticals . Of these three, Rocket Pharmaceuticals posted the highest upside potential of 81.4%.
Analysts Ardelyx Inc Biomea Fusion Inc biotech Biotechnology and Pharmaceuticals business news Cabaletta Bio Inc Citi Trends Inc giving Healthcare industry Humacyte Inc Love Marinus Pharmaceuticals Inc Olema Pharmaceuticals Inc Ovid Therapeutics Inc Rocket Pharmaceuticals Inc Stock exchanges stocks upside