The outlook is starting to look bright for biotech stocks, according to some. Earlier this month, Morgan Stanley analysts noted that biotech stocks outperform in the months leading up to an initial rate cut, though they underperform in the initial period after rates are lowered. Biotech encompasses many different areas, but Citi has identified one with a $2.9 billion market — which it says is set for even more growth.
CSL's treatment Garadacimab has "best-in-class efficacy" and has the potential to become the "standard of care" once launched in 2025, said Citi. "CSL has demonstrated over the last 25 years that it can deploy capital at a high rate of return, and has been able to consolidate the global plasma industry to the point where the market structure is well balanced," said Citi. It gave CSL a price target of $305, or nearly 11% potential upside.