Investing in These 2 Stocks Could Double Your Money, Say Analysts

Investors are constantly searching for the next big winner. We mean the stocks on track to see explosive growth, handsomely rewarding the investors who got on board at the right time. But how should investors know when to snap up the right stock?

When approaching this task, investors often turn to names during or on the heels of an impressive rally. However, Wall Street analysts note this isn’t always the best move. Instead, the Street’s seasoned pros tell investors that compelling investments can be found among names that have stumbled lately. Rockiness in share prices can present a unique opportunity to get in on the action before the stock increases. Considering this, we used TipRanks’ database to pinpoint two tickers with strong growth narratives that remain intact despite recent weaknesses. These stocks not only have earned overwhelmingly bullish support from the Wall Street analysts who cover them but sky-high upside based on the pros’ estimates. Let’s take a closer look.

Investing in These 2 Stocks Could Double Your Money, Say Analysts

Global Blood Therapeutics (GBT)

We’ll start with Global Blood Therapeutics, a clinical-stage biopharmaceutical company that treats sickle-cell disease (SCD), a severe hereditary blood condition. Global has one drug, voxeletor (trade name Oxbryta), approved and on the market as a treatment for adults with SCD and an active development pipeline. The company’s research pipeline includes clinical trials of voxeletor for additional indications in the treatment of SCD and several newer drug candidates in earlier stages of development.

Voxeletor sales brought in $47.6 million for GBT in the second quarter of this year, a yoy increase of 51%. The drug is approved for use in patients over age 12. Still, in early September, GBT announced that the FDA has ‘accepted for review’ a supplemental New Drug Application (sNDA) for voxeletor’s potential use in the pediatric market in children ages 4 to 11. GBT is also pursuing marketing authorization for Voxeletor in the European Union.

In July of this year, GBT kicked off two Phase 3 pivotal trials of inclacumab, the leading drug candidate in the research pipeline. These studies will evaluate inclacumab in treating vaso-occlusive crises (VOC) and VOC-related hospital readmissions. Among the company’s preclinical drug candidates for treating SCD, GBT601 is the most advanced. The company is initiating a Phase 1 proof-of-concept trial, with data expected by the end of the year. While there’s no question that shares have taken a beating over the last 12 months (down 55%), Jefferies analyst Akash Tawari believes the pullback represents an attractive entry point.

“In our view, GBT is two pitches in one. 1). Oxbryta’s implied mkt share of SCD is only 5-6% at the current valuation. We think this is prohibitively low given its efficacy + tolerability that match up favorably vs. FMTX & AGIO’s SCD drugs. More importantly, Oxbryta should return to growth next year as COVID gets under control... In our base case, we estimate $1.1B peak sales of Oxbryta, w/a a 22% market share. 2) We’re bullish on GBT601, a next-gen Oxbryta with the best-in-class preclinical data and the potential to rival gene therapies if treated early in SCD pts. We currently model $0.9B risk adj. peak sales. Its key dataset comes out in December at ASH, where GBT will show 6+ SCD pt data,” Tawari opined.

The analyst said, “Valuation and timing make GBT a top pick for investors willing to enter the name ahead of ASH.” To this end, Tawari rates GBT shares a Buy and a $68 price target. This target conveys his confidence in GBT’s ability to climb ~145% from current levels. (To watch Tawari’s track record, click here) It appears the rest of the Street sees plenty of upsides, too. Based on 9 Buy ratings and 3 Holds, the analyst community rates GBT a Strong Buy. The average price target hits $75.55, implying a potential upside of ~172% over the coming months. (See GBT stock analysis on TipRanks)

Brooklyn ImmunoTherapeutics(BTX)

Next up, Brooklyn ImmunoTherapeutics is a purely clinical-stage biopharma company focused on cancer treatment. The company is working on cytokine-based therapies and testing them in mono treatment and combination with existing ant-cancer drug courses. BTX’s work with cytokines has led it to IL-2, or interleukin-2, a cytokine that helps boost lymphocytes in the immune system. The company is putting its lead candidate, IRX-2, through clinical trials. Data from the Phase 2a study in patients with squamous cell carcinoma of the head and neck (SCCHN) showed the drug was efficacious in stimulating lymphocyte infiltration of the tumors. Lymphocyte infiltrations are associated with patients’ long-term survival of cancer.

The Phase 2a clinical trial has given BTX a runway to initiate a Phase 2b trial, the INSPIRE study, of IRX-2 in SCCHN patients. The study has 105 patients with various forms of SCCHN. Enrollment for the investigation has been completed, and the company expects to release early results in 1H22. BTX’s research pipeline is crucial, but the company has also been making waves for business moves. In July, BTX completed its acquisition of the private biopharma firm Novellus. The transaction enhanced BTX’s research program by merging Novellus’ work with cellular, gene editing, and cytokine programs.

The acquisition of Novellus brings another advantage to BTX – it relieves the company of responsibility for royalty payments. In April, BTX paid Novellus $1 million for the rights to the private firm’s mRNA/GE research platform; this acquisition, arguably, completes BTX’s buy of that technology. This company has been keeping busy this year. In addition to ongoing research and its M&A activity, BTX went public in March of this year. A SPAC transaction, a reverse merger with NTN Buzztime, Inc., accomplished the move. The union was an all-stock deal that saw the BTX ticker commence its trading on March 26.

BTX shares peaked last May, but the stock has declined since then. Claims are down 89% since their peak. However, Maxim analyst Jason McCarthy sees the stock’s current valuation and positive prospects as reasons for optimism. “IRX-2 is the near-term driver with the P2b ongoing and data in 1H22. The mRNA/GE platform is moving through preclinical steps and updates, particularly with investors focused on this therapeutic category. This could support both near- and long-term value for BTX investors. The story has just begun for BTX, with the company going public via reverse merger in March 2021, installing an experienced management team in April 2021, and acquiring Novellus. As such, the pieces should be in place for success; at a ~$450M market cap, BTX shares are undervalued,” McCarthy explained.

McCarthy rates BTX shares a Buy, and his $20 price target suggests the stock can grow 131% from the current $8.67. (To watch McCarthy’s track record, click here) Some stores fly under the radar, and BTX is one of those. This company’s only recent analyst review is McCarthy, which is decidedly positive. (See BTX stock analysis on TipRanks) To find good ideas for stocks trading at attractive valuations, visit TipRanks’ Best Stocks to Buy, a newly launched tool that unites all of TipRanks’ equity insights.


I have always enjoyed writing and reading other people's blogs. I started writing a journal as a teenager and have since written numerous books and articles. My blog is a place where I can write freely about my personal interests and those of others.

Leave a Reply

Your email address will not be published. Required fields are marked *