Analysts Spotlight Select Biotech Names for 2026

Recent research coverage across a group of sub‑$20 biotech stocks highlights how 2026 clinical and commercial milestones are driving updated views on risk and reward. Firms including Barclays, Piper Sandler, TD Cowen, Jefferies, Leerink Partners, Goldman Sachs and others issued new ratings and targets tied to late‑stage trials, regulatory interactions and early launch trajectories.

Across obesity and liver disease, immuno‑oncology, gene therapy and rare disease programs, analysts adjusted financial models and probability‑of‑approval assumptions, often emphasizing that these companies’ low share prices leave considerable pipeline outcomes unreflected in current valuations.

Altimmune, a clinical‑stage company developing peptide‑based therapeutics for obesity and metabolic dysfunction‑associated steatohepatitis (MASH), was initiated Overweight at Barclays with a $20 target. The bank argued the biotech sector remains attractively valued versus pipeline potential and noted Altimmune’s lead candidate pemvidutide holds FDA Breakthrough Therapy Designation and positive 48‑week Phase 2b data as it moves toward Phase 3 MASH development. Altimmune recently said it will direct offering proceeds to working capital and Phase 3 preparation.

Ardelyx, focused on gastrointestinal and cardiorenal therapies, received target increases from both TD Cowen and Jefferies, to $13 and $15 respectively, with Buy ratings maintained. Jefferies cited Ardelyx as one of the most underrated recent biotech launches and now models tenapanor peak sales of $1.5–$2.0 billion by 2035, supported by sustained execution on Ibsrela, potential upside from additional IBS‑C and CIC indications, and extended intellectual property, including a formulation patent running to 2041.

ImmunityBio drew a higher price target from Piper Sandler, to $7 with an Overweight rating, after U.S. ANKTIVA net sales rose nearly 700% year over year to $113 million in 2025, with revenue projected at $180 million in 2026. Piper Sandler pointed to encouraging interim data from the QUILT‑2.005 trial and expects positive fourth‑quarter 2026 results could support a label expansion in 2027. Separately, the company reported Phase 2 QUILT‑3.078 results in recurrent glioblastoma, noting longest survival of 12 months, median overall survival not yet reached, preserved immune competence and improvement in severe lymphopenia.

Legend Biotech’s multiple myeloma cell therapy Carvykti was the subject of differing assessments. H.C. Wainwright cut its target to $50 but kept a Buy rating, calling the recent pullback a buying opportunity and emphasizing the drug’s curative potential. TD Cowen, by contrast, downgraded Legend to Hold and reduced its target to $21, citing Carvykti’s Q4 2025 sales of $555 million versus $582 million consensus, holiday seasonality, toxicity concerns, growing competition and what it described as sluggish demand limiting adoption in both community and academic centers.

Intellia Therapeutics, which is advancing CRISPR‑based gene editing, saw its outlook improve after the FDA lifted a clinical hold on the Nex‑Z hATTR‑PN trial. Baird raised its target to $7 while remaining Neutral, updating its model for the resumed program. H.C. Wainwright boosted its target more sharply, to $25 with a Buy rating, interpreting the lifted hold as evidence that Nex‑Z’s risks are manageable and increasing its modeled probability of approval from 25% to 35%.

Lexeo Therapeutics, focused on genetic medicines for cardiovascular disease, reported preliminary Phase I/II HEROIC‑PKP2 data for LX2020, an AAV‑based gene therapy for PKP2‑associated arrhythmogenic cardiomyopathy. The company said treatment was generally well tolerated without clinically significant complement activation, showed dose‑dependent PKP2 protein increases averaging 93% in the low‑dose and 162% in the high‑dose group, and suggested improvement or stabilization in arrhythmia features such as premature ventricular contractions and non‑sustained ventricular tachycardia. Nonetheless, H.C. Wainwright cut its target to $10 while keeping a Buy rating, stating that market reaction implied continued skepticism toward the PKP2 program.

Taysha Gene Therapies, developing AAV‑based treatments for severe monogenic CNS diseases, gained support from Wells Fargo, which raised its target from $8 to $11 and maintained an Overweight rating. The bank highlighted anticipated 2026 outperformance on the back of its Rett syndrome program TSHA‑102, following FDA approval of a favorable pivotal trial design. Taysha has since dosed the first patient in the REVEAL pivotal phase, received FDA authorization to use ASPIRE trial data in a planned BLA, and guided to updated safety and efficacy data from REVEAL Part A in the first half of 2026, with dosing completion in both studies expected by the second quarter.

Arcturus Therapeutics, which develops mRNA vaccines and RNA therapeutics, was initiated at Buy by Roth Capital with a $20 target. Roth argued that Arcturus’ two mid‑stage programs show clinical activity and each has peak sales potential above $1 billion, while the stock trades near cash value, effectively pricing in a zero probability of success. The firm characterized Arcturus as potentially one of the most mispriced rare‑disease names. Earlier, Citigroup had cut its target from $9 to $7 and kept a Neutral rating while flagging opportunities in SMID‑cap biotech at or near commercial stage.

Janux Therapeutics drew a downgrade from Clear Street to Hold, with its target reduced to $12 from $32. The broker cited a lack of clear durability signals from lead molecule JANX007 and the absence of new data from JANX008 as introducing material platform risk, alongside rising competition and what it termed an undefined path for JANX007. Shortly after, Janux announced an exclusive worldwide license and collaboration with Bristol Myers Squibb on a novel tumor‑activated therapy targeting a validated solid‑tumor antigen. Under the agreement, Janux will complete preclinical work through IND filing, after which Bristol Myers will hold the IND and lead global development and commercialization. Janux is eligible for up to $50 million in upfront and near‑term milestones, plus more than $800 million in potential later‑stage milestones and tiered royalties, and will support the first Phase 1 study.

Kura Oncology, advancing precision medicines for hematologic malignancies and solid tumors, remained rated Outperform at Leerink Partners though its target was trimmed from $25 to $20 to reflect preliminary Q4 results and 2026 guidance, including net product and collaboration revenues from KOMZIFTI (ziftomenib). Kura reported that KOMZIFTI, the first approved oral menin inhibitor for relapsed or refractory NPM1‑mutated AML, generated $2.1 million in net product sales in its first five weeks of launch to December 31, 2025. The company outlined 2026 priorities including expanding ziftomenib into combination regimens and non‑AML indications, growing commercial use and progressing ongoing AML trials.

MoonLake Immunotherapeutics, which develops Nanobody therapies for inflammatory diseases, received a Sell rating from Goldman Sachs despite a higher target of $10. Goldman pointed to sonelokimab’s move into Phase 3 for palmoplantar pustulosis as an added opportunity but maintained that significant approvability risk remains in hidradenitis suppurativa following the VELA‑2 trial’s failure to meet its primary endpoint, and argued that FDA procedural guidance does not meaningfully reduce uncertainty. In contrast, H.C. Wainwright raised its target on MoonLake to $32 with a Buy rating, saying a recent FDA Type B meeting outcome provided a defined regulatory path.

CytomX Therapeutics, a developer of condition‑activated Probody therapeutics, saw target increases from Piper Sandler and Barclays, to $10 and $8 respectively, with both firms maintaining Overweight ratings. The moves followed initial Phase 1 data for varsetatug maseatecan in heavily pretreated metastatic colorectal cancer, showing a 28% overall response rate, 94% disease control rate and median progression‑free survival of 5.8 months. Piper Sandler highlighted an upcoming 2026 update from around 100 patients across three dose cohorts, where further evidence of dose‑dependent benefit could reinforce what it views as an attractive risk‑reward profile.