Many stocks were wobbly over the past few trading days, but we can't say that about biotech AnaptysBio(NASDAQ: ANAB). The company's shares closed the week almost 8% higher in price, according to data compiled by S&P Global Market Intelligence, largely on the strength of a research note published by a high-profile and influential bank.
Doing well by Wells Fargo
That occurred on Thursday before market open, when Wells Fargo initiated coverage of AnaptysBio stock with an overweight -- buy, in other words -- recommendation at a target price of $56 per share. That's a very bullish take on the company, as its most recent closing price of $22.71 is less than half that figure.
In the bank's view, the biotech is sorely undervalued as the company's pipeline is something of a sleeper among investors.
It singled out AnaptysBio's rosnilimab, which in the company's words "reduces overactive T cell inflammation" (a T cell is a white blood cell that helps the body fight infections). Wells Fargo feels that rosnilimab could be very competitive to peresolimab, which is currently being developed by pharmaceutical giant Eli Lilly.
A potential double dose
While an anticipated 100%-plus gain in share price might seem outsized to some, such a gain isn't unusual in the biotech world -- particularly for clinical-stage companies like AnaptysBio. If an investigational drug does well in clinical trials and comes to market, the rewards for the company behind it can be considerable. Wells Fargo clearly believes AnaptysBio has a solid chance with rosnilimab; we'll see if it's able to realize that potential.
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Wells Fargo is an advertising partner of The Ascent, a Motley Fool company. Eric Volkman has no position in any of the stocks mentioned. The Motley Fool recommends AnaptysBio. The Motley Fool has a disclosure policy.
