The stock market may have pulled back a bit from the all-time high reached late last month but the S&P 500 remains 7.4% higher in 2024. Technology stocks continue to be top performers with Super Micro Computer (NASDAQ:SMCI) leading the way with a 216% gain so far.
However, analysts at the wealth management arm of Goldman Sachs think the tech sector may have run its course. They say it is time to start looking elsewhere. Investors would be better off taking the profits they’ve made in tech and deploying them in other sectors. The investment firm is leaning into energy and Japanese stocks.
That follows Warren Buffett’s thinking. The Oracle of Omaha has been busily buying energy stocks for Berkshire Hathaway (NYSE:BRK-A)(NYSE:BRK-B). And, in his annual shareholder letter he called out the CEOs of the five Japanese banks he owns as models their American counterparts ought to follow.
Analysts at global financial services firm BTIG Research appear to agree but have different ideas on where to invest. Biotechnology dominates the coverage they’ve recently initiated. Below are the stock predictions of three companies they forecast have tremendous upside potential. The stocks are seen growing 118% or more. Let’s see why.
Theravance Biopharma (TBPH)
BTIG analyst Julian Harrison initiated coverage last week on Theravance Biopharma (NASDAQ: TBPH) with a buy rating and a price target of $21 per share. The one-year price target on the biopharmaceutical stock implies growth potential of more than 118.% over where TBPH stock closed trading on Friday.
His thesis is phase 3 data for Theravance’s investigational drug ampreloxetine is due in 2025 and should be positive. The therapy treats neurogenic orthostatic hypotension, a drop in blood pressure particularly as experienced by Parkinson’s patients.
Harrison finds Theravance in excellent financial shape ahead of the report. The biopharma has no long-term debt (it does have $45 million in long-term operating leases, though), has cut operating expenses by 60% over the past four years and has been buying back stock at a health clip. He notes management anticipates minimal cash burn ahead of the data.
Theravance is receiving revenue from Viatris (NASDAQ:VTRS), which sells the biopharma’s Yupelri. This is a treatment for patients with chronic obstructive pulmonary disease (COPD). Theravance receives 35% of all sales, or $57.2 million in 2023. The biopharma will register to sell the drug in China beginning in mid-2024. Theravance Biopharma stock could take off this year if approval is granted.
AnaptysBio (ANAB)
Another biotech BTIG sees a bright future for is AnaptysBio (NASDAQ:ANAB). The company seeks to treat various autoimmune diseases through checkpoint agonism, or creating a physiological response when a therapy is combined with a receptor. AnaptysBio points to conditions such as ulcerative colitis where, despite existing treatments, there is still significant unmet need.
BTIG notes it’s not a clearcut path to growth for AnaptysBio. The analyst says safety concerns were previously raised when checkpoint agonism was used in cancer treatment, but they may be overstated. As a result, BTIG is watching the progress Eli Lilly (NYSE:LLY) is making using agonism with peresolimab, a therapy for rheumatoid arthritis. A positive outcome could boost AnaptysBio stock by 75% or more. A negative outcome could result in a 20% to 40% decline. The firm, though, is feeling upbeat about Lilly’s prospects.
BTIG initiated coverage of AnaptysBio with a buy rating and a $55 per share price target, some 142% above Friday’s close. Also, Wells Fargo weighed in on the biotech last week and set a $56 per share price target.
Bitdeer Technologies (BTDR)
BTIG isn’t completely willing to abandon the technology sector as it initiated coverage on bitcoin miner Bitdeer Technologies (NASDAQ:BTDR). Analyst Gregory Lewis issued a buy rating with a $15 per share price target, 148% above its Friday close. He points to Bitdeer’s mining operations as well as its diversification. Additionally, it has a substantial self-mining hash rate and hosting capabilities. As of Feb. 29, Bitdeer had a proprietary hash rate of 8.4 exahashes per second (EH/s).
However, Lewis’ buy rating is based on Bitdeer’s strategic investments in equipment technology as well as having an advantageous power infrastructure. The analyst notes the miner wants to quadruple its self-mining capacity to around 30 EH/s. It could achieve that by successfully developing 1,075 megawatts (MW) of power infrastructure.
InvestorPlace contributor Alex Sirois maintains Bitdeer Technologies is the lowest all-in cost Bitcoin miner by a long shot. Although it had a disappointing earnings report, the bitcoin miner still grew revenue and narrowed losses. That suggests the faith Wall Street is putting in Bitdeer Technologies stock may not be misplaced.
On the date of publication, Rich Duprey did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.