A Look At 3 Biotech Stocks With Upside Potential

Kite Pharma Inc (NASDAQ: KITE) continued its winning streak, up another 4 percent Monday. Although the stock more than tripled in price over the past six months, analysts still see upside left. Mizuho Securities initiated coverage on the stock last Friday, with a Buy rating and a $90 price target.

How Are Its Peers Looking?

Much larger market cap peer Gilead Sciences, Inc. (NASDAQ: GILD) is also looking attractive. The beginning of January brought positive news for the company; after striking a deal with CVS Health Corp, in which the pharmacy will now exclusively offer its Hepatitis C drug Harvoni, Barclays initiated coverage with an Overweight rating and $125 price target, while JP Morgan reiterated its Overweight rating.

Most recently, Gilead obtained orphan drug status for its Simtuzumab as a treatment for a rare disorder related to the liver.

Also bullish on Gilead is Deutsche Bank, which reiterated a Buy on December 23, accompanied by a $125 price target.

The stock traded around $101.37 at time of writing.

Related Link: Gilead Sciences Gains Orphan Drug Status For Liver Treatment

Another company on which Wall Street seems pretty bullish is Biogen Idec Inc (NASDAQ: BIIB). JP Morgan and Barclays recommended the stock recently. The former reiterated an Overweight rating with a $407 price target, qualifying the company’s pipeline as “one of the most compelling in large cap biotech, with highly innovative programs like LINGO in MS and various Alzheimer’s assets that, while early stage, have the potential to produce high profile data in 2015.”

Barclays initiated coverage on Biogen Idec with an Overweight rating and $425.00 price target, arguing that “Biogen's Tecfidera still offers a lot of upside in the multiple sclerosis (MS) market, especially in the EU, where it is early in the launch.”

Biogen Idec closed Monday at $347.84.