As debt-ceiling negotiations and economic data point to potential challenges ahead, investors seek guidance to navigate the volatile market. Wall Street investing legend Steve Cohen, Chairman and CEO of Point72, has amassed a fortune through a high-risk/high-reward strategy. Monitoring Cohen’s latest stock purchases can provide valuable insights, and two of his recent positions have also received a Strong Buy rating from analysts. Let’s delve into these stocks and explore their potential.
Iovance Biotherapeutics (IOVA):
Cohen’s high-risk/high-reward strategy leads him to the biotech sector, where Iovance Biotherapeutics operates. This clinical-stage biotech company specializes in the development of novel cancer immunotherapies. Iovance focuses on personalized cell therapies using tumor-infiltrating lymphocytes (TILs), which are T-cells that migrate to a patient’s tumor to recognize and attack cancer cells.
Iovance’s pipeline is led by Lifileucel, currently being tested in various programs, including advanced melanoma treatment for patients who have failed previous therapies. The company recently completed the Biologics License Application (BLA) submission to the FDA based on positive clinical data. Cohen’s new position in Iovance involves 8,800,059 IOVA shares, valued at approximately $69 million.
Stifel analyst Benjamin Burnett anticipates an update on the BLA by the end of this month. Considering the lack of approved treatments in this setting, Burnett is confident in the drug’s chances of approval. He also highlights the potential for a successful launch, given Iovance’s own manufacturing facility, plans to onboard treatment centers, and established CMS pricing. Burnett rates IOVA shares as a Buy with a $21 price target, implying a 168% upside.
Vir Biotechnology (VIR):
Vir Biotechnology aims to combat infectious diseases by developing monoclonal antibodies and T-cell therapies. The company’s diverse pipeline targets diseases such as hepatitis B, influenza, and HIV. Upcoming data updates include a Phase 2 study evaluating VIR-2482 for influenza prevention and multiple trials assessing functional cures for chronic hepatitis B.
Cohen initiated a new position in Vir Biotechnology during Q1, purchasing 1,683,100 VIR shares, now valued at over $43.1 million. H.C. Wainwright analyst Patrick Trucchio considers Vir his top pick for 2023, citing the company’s strong financial position to fund clinical trials. Trucchio estimates that VIR-2218 could generate over $15 billion in revenues over the next 15 years. He rates the stock as a Buy with a price target of $100, representing a potential 290% upside.
The consensus among analysts aligns with Trucchio’s optimism, with a Strong Buy rating and a 91% projected one-year gain for Vir Biotechnology.
Conclusion:
Steve Cohen’s recent stock picks, Iovance Biotherapeutics and Vir Biotechnology, have caught the attention of investors and analysts alike. With a high-risk/high-reward approach, Cohen’s positions in these biotech and immunology companies indicate their potential for success. Analysts have assigned Strong Buy ratings to both stocks, emphasizing their significant upside. As investors navigate the market’s uncertainties, monitoring the strategies of Wall Street legends like Cohen can provide valuable insights and guide investment decisions.
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