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Investing.com - Piper Sandler has identified a renewed upcycle in the biotech sector, highlighting 17 stocks to own through year-end 2025 as the industry benefits from strong fundamentals and easing macroeconomic pressures. Among these picks, Praxis Precision Medicines (NASDAQ:PRAX) stands out with a remarkable 428% surge over the past six months, according to InvestingPro data.
The biotech sector has shown significant momentum since April, with the NYSE Biotech Index rallying approximately 30% and the NASDAQ Biotech Index gaining about 38% from their April 8th lows, according to Piper Sandler’s analysis. For investors tracking PRAX specifically, InvestingPro reveals analyst targets ranging from $73 to $441, with the next earnings report due November 5.
Despite these gains, the firm believes much of the biotech sector remains attractively valued and expects continued outperformance through the end of 2025 and into 2026, driven by several key drug approvals, promising clinical data, innovation, and increasing merger and acquisition activity.
The research firm identified potential headwinds for the sector, including uncertainty related to RFK Jr., FDA unpredictability, and drug pricing pressure, but remains optimistic about the sector’s prospects.
Piper Sandler’s recommended biotech stocks include NYSE:ABBV, NASDAQ:ARGX, NASDAQ:ARWR, NASDAQ:BBIO, NASDAQ:CGON, NASDAQ:CNTA, NASDAQ:COGT, NASDAQ:CRSP, NASDAQ:DYN, NASDAQ:GPCR, NASDAQ:KRRO, NASDAQ:NUVL, NASDAQ:PRAX, NASDAQ:SLDB, NASDAQ:SUPN, NYSE:TEVA, and NASDAQ:URGN.
In other recent news, Praxis Precision Medicines has announced the pricing of its underwritten public offering, raising $525 million by selling 3,025,480 shares of common stock at $157.00 per share. The offering includes pre-funded warrants for 318,470 shares at $156.9999 per warrant, with an exercise price of $0.0001 per share. This development follows the company’s earlier proposal for a public offering, which included a 30-day option for underwriters to purchase additional shares. In addition to these financial moves, Praxis has received positive attention from analysts due to successful Phase 3 clinical trial results for its essential tremor treatment, ulixacaltamide. Oppenheimer raised its price target for Praxis to $250.00 from $115.00, maintaining an Outperform rating. Similarly, Truist Securities increased its price target to $360.00 from $85.00, keeping a Buy rating. Baird also raised its price target to $275.00 from $76.00, describing the trial results as "thesis changing" for the company. These recent developments highlight significant progress and investor interest in Praxis Precision Medicines.
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