These companies are developing some of the most cutting-edge biotechnology and are experiencing great excitement in the market, and analysts believe that all four companies have reason to rise.

These companies are developing some of the most cutting-edge biotechnology and are experiencing great excitement in the market, and analysts believe that all four companies have reason to rise. This year is still a difficult year for biotech stocks. Although the S&P 500 index has risen 25% so far in 2021, major biotech ETFs have lagged far behind. iShares Biotech ETF (IBB), which has a larger weight in large biotech stocks, rose 1.3% in 2021, while the SPDR SP Biotech ETF (XBI), which is more evenly distributed among small and medium-sized biotech stocks, fell 12.2%. Even the large biotech companies that have made great progress in the early stage of this year are struggling to get to an end of this year. For example, Moderna (MRNA) rose 238.5% in the first six months of 2021, but fell 33.5% since the beginning of August. "With all other vertical sectors rising vertically, the market has basically determined that putting money into biotech, a more complex and volatile sector, is not the best way to use capital," said Jared Holz, a health care stock strategist at Oppenheimer, in an email to investors in late October. "While the outlook is not optimistic, analysts see hope for some biotech companies." To select some of the most promising stocks, Barrons repeated a screening this summer, putting stocks in IBB and XBI together to find four stocks with a market capitalization of more than $5 billion and trading at the far lower than the average analyst target price calculated by FactSet. The four stocks that screened are Fate Therapeutics (FATE), CRISPR Therapeutics (CRPS), Denali Therapeutics (DNLI) and Ultragenyx Pharmaceutical (RARE). These companies are developing some of the most cutting-edge biotechnology and are experiencing great excitement in the market. Analysts believe that all four companies have reason to rise. Barron's magazine conducted the same screening in July, and the selected stocks were different from this time. At that time, the stocks selected were TG Therapeutics (TGTX), Vir Biotechnology (VIR) and Exelixish (EXEL), and Ultragenyx was also on the list. 's clinical stage biotech company Fate, which focuses on cancer treatment, has fallen 39.5% this year. According to FactSet, its average target price for analysts is $105.63, which means there is still room for upside from its recent $53.03 price. Jeferies analyst Michael Yee recently said in a report that Fate's recent release of solid tumor data is a "promising harbinger" of other projects expected to be released next year. Michael Yi rated the company's stock as a "buy" with a target price of $145. Michael Yi wrote: "From the timing and disclosure of next year's data, this provides a huge catalyst for the company's stock price to rise in 2022." CRISPR Therapeutics is a biotechnology company specializing in gene editing , and has some experimental drugs in clinical practice. CRISPR Therapeutics shares fell 43.7% this year. Analysts have an average target price of $157, meaning the stock has 84.5% room to rise compared to the recent $84.88. "Without any product approval yet, CRISPR is valued at $7 billion, and we must admit that it is still a highly valued stock. Nevertheless, with multiple projects entering the clinic, the potential benefits are huge. If (proof of concept) is successful, this will open the floodgates of opportunities, and we are excited." rating CRISPR was "outperformed" and gave a target price of $125. Denali Therapeutics, another clinical-stage biotech company that develops drugs for neurodegenerative diseases, has fallen 40% this year. Analysts have an average target price of $89.08 for the stock, which means the stock price has 80.9% room to rise compared to the recent $49.25. html In early November, Evercore ISI analyst Josh Schimmer wrote in a report on Denali: "If there is another Moderna in the field of biotechnology, it's it."" Ximo wrote: "I think this stock could become the 'next Moderna' in the biopharmaceutical field. "He mentioned the potential of a treatment called DNL343 amyotrophic lateral sclerosis that Denali is developing. Himmer targets the stock at $111, which he rated as "outperforming the market." Last company, Ultragenyx Pharmaceutical, is developing gene therapies and other drugs for the treatment of rare genetic diseases. Unlike other publicly listed companies, Ultragenyx does have drugs on the market, including a one called Crysvita Ultragenyx shares have fallen 42.4% this year. The stock has recently traded at $79.62. Analysts have an average target price of $140.11, meaning the stock still has 76% room to rise. In a Nov. 3 report, Citi analyst Yihal Nochomovitz wrote: "The stock is trading at a great discount to fair value , and there are several factors that should help drive the stock price up. "Nokomowitz specifically pointed out that the data on angel syndrome gene therapy released by the company in the middle of next year will be a catalyst. article | "Barrons" contributor Josh Nathan-Kazis editor | Wu Yuting translation | Xiaocai copyright statement: original article from "Barronschina" is not allowed to be reproduced without permission. See the English version on November 17, 2021 report "4 Beaten-Down Biotech Stocks That Could Take Off.” (The content of this article is for reference only, and investment advice does not represent the tendency of Barron's magazine; the market is risky, so investment must be cautious.) (This article is for readers' reference only and does not constitute a provision or reliance for investment, accounting, legal or tax advice.)