2 Biotech Stocks That Could Soar 29% and 165% According to Wall Street's Top Analysts

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2 days ago

Key Points
Regeneron Pharmaceuticals is highly profitable and raking in free cash flow.
Viking Therapeutics has multiple exciting candidates in the pipeline, including its lead GLP-1 candidate.
10 stocks we like better than Regeneron Pharmaceuticals ›
The healthcare industry has been a remarkable place for investors to build significant portfolio returns through the years. Companies that are providing life-saving medicines, devices, and other products are often at the forefront of innovation in the healthcare space, a durable industry that tends to be broadly resilient even in times of economic unrest.
If you're looking to put cash into two fantastic biotech stocks that Wall Street seems particularly bullish on, there's one with an average 12-month price forecast of 29% (which is still nearly three times as much as the average annual stock-market return) and one with an average 12-month price forecast in multibagger territory. Both growth profiles could add value to a long-term portfolio. So here are two companies you won't want to overlook the next time you go shopping for investments.
1. Regeneron Pharmaceuticals
Regeneron Pharmaceuticals (NASDAQ: REGN) is getting a thumbs-up from Wall Street, with some analysts predicting potential upside over the next 12 months in the ballpark of 29% at the midpoint, or up to 68% at the high end. This biotech is known for its antibody-based therapies targeting a range of disease areas. For example, the company has pioneered the use of monoclonal antibodies to treat conditions including eczema, macular degeneration, and cancer.
Its top-selling product is Dupixent, a drug primarily used for treating conditions like asthma and atopic dermatitis. In 2024, global net sales of Dupixent, which Regeneron co-markets with Sanofi, reached $14.2 billion, up 22% from the prior year. Another blockbuster product in Regeneron's portfolio is Eylea, a treatment for retinal diseases; it generated $6 billion in U.S. net sales in 2024, roughly on par with its 2023 sales figures. Libtayo, an oncology drug, also surpassed $1 billion in annual net sales in 2024, up 40% from the prior year.
Regeneron Pharmaceuticals is navigating a complex landscape right now, and that's fed into the downward pressure its shares have experienced recently. Eylea is facing increasing competition from biosimilar versions and other treatments. And the adoption of the more recently launched Eylea HD (a higher-dose formulation) has been slower than anticipated, while also cannibalizing Eylea's sales. Regeneron's first-quarter revenue of $3.03 billion missed analyst estimates and was a 3.7% year-over-year decline, but the company reported a 12% increase in net income from the prior-year quarter to $809 million.
The biotech continues to advance its pipeline with 45 product candidates in clinical development and several regulatory approvals expected in 2025. Key recent approvals included Lynozyfic (linvoseltamab) in the EU and U.S. for multiple myeloma. Lynozyfic is a bispecific antibody that helps the immune system fight the cancer. The company's top-selling drug Dupixent has also received numerous label expansions in 2025; it is the first new targeted therapy in over a decade for the condition chronic spontaneous urticaria, and the first-ever targeted treatment approved for bullous pemphigoid, a chronic and debilitating skin disease.
Regeneron has also submitted regulatory applications for Libtayo seeking an additional indication as an adjuvant therapy for cutaneous squamous cell carcinoma (CSCC). This is based on data from a phase 3 trial which demonstrated that adjuvant treatment with Libtayo was the first and only immunotherapy that resulted in statistically significant improvement in disease-free survival in patients with high-risk CSCC after surgery.
There's plenty of growth opportunity still ahead for Regeneron Pharmaceuticals, which had free cash flow of more than $2 billion on $4.5 billion in profits over the trailing 12 months; it also recently initiated a dividend. This could be a worthy healthcare stock to add to your portfolio for both long-term returns and dividend income.
2. Viking Therapeutics
Viking Therapeutics' (NASDAQ: VKTX) shares could rise over the next year by as much as 165% at the midpoint according to some analysts, or even up to 268% at the high end. The company creates drugs targeting numerous conditions, but its most closely watched and lead candidate is VK2735, a dual GLP-1 and GIP receptor agonist.
Viking has advanced the subcutaneous formulation of VK2735 into phase 3 trials for obesity, but it's also developing an oral tablet formulation. The company is planning to announce 13-week results from the phase 2 Venture study of the pill version in the second half of 2025.
While VK2735 is its most advanced candidate, Viking also has other drug candidates in its pipeline, including an oral, small-molecule, selective thyroid hormone receptor beta agonist for metabolic dysfunction-associated steatotic liver disease (MASLD) and metabolic dysfunction-associated steatohepatitis (MASH). This is a type of medication that specifically targets and activates the thyroid hormone receptor beta in the body, using a small molecule as the active ingredient.
Another key candidate to watch is Viking's oral drug candidate for treating X-linked adrenoleukodystrophy (X-ALD). X-ALD is a genetic disorder primarily affecting the nervous system and adrenal glands, which results in the breakdown of myelin, a fatty substance that encapsulates the nerves.
As a clinical-stage biopharmaceutical company, Viking Therapeutics is very unlike the first pick above. In fact, this is probably a choice only for the more risk-tolerant of stock investors. Viking is pre-revenue, and racking up losses as it draws closer to commercialization of its first-ever products. The company had about $808 million in cash, cash equivalents, and short-term investments on its balance sheet at the end of Q2.
The excitement and hype around the stock, which has faced volatility of late but is up by double-digit percentages over the last month alone, are not unfounded. If you have a solid risk-tolerance level and an otherwise well-diversified portfolio, this biotech stock could be an intriguing addition.
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Rachel Warren has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Regeneron Pharmaceuticals. The Motley Fool recommends Viking Therapeutics. The Motley Fool has a disclosure policy.
2 Biotech Stocks That Could Soar 29% and 165% According to Wall Street's Top Analysts was originally published by The Motley Fool