Morgan Stanley analysts have identified two stocks they believe are poised for significant gains, regardless of the outcome of the 2024 U.S. elections. The stocks, Tenaya Therapeutics (TNYA) and Royalty Pharma (RPRX), both carry a Strong Buy consensus rating from market analysts. Tenaya Therapeutics, a research-oriented biopharmaceutical company focused on developing new therapeutic drugs for the treatment of heart disease, is currently conducting clinical trials for its primary drug candidates, TN-201 and TN-401.
Analyst Michael Ulz views Tenaya as a compelling investment, with TN-201 driving the company’s value. Ulz notes, “Interim Ph1b MyPEAK-1 data for TN-201 in nHCM are expected in December and represent a key catalyst for Tenaya’s lead program. We see a favorable risk/reward on initial data, which could provide early de-risking, followed by more robust data in 2025.” Ulz rates TNYA shares as Overweight (i.e., Buy) with a $15 price target, indicating a potential ~670% upside from current levels.
Royalty Pharma offers investors a unique entry into the biotech sector by purchasing ownership rights in biopharmaceutical products and earning royalties on sales and profits.
Stock picks for significant gains
The company’s portfolio includes more than 35 approved products and rights in another 17 drug candidates in development.
Analyst Terence Flynn is optimistic about Royalty Pharma’s long-term prospects, stating, “RPRX has one of the highest top-line growth rates in our coverage and is trading at a discount. We believe the company’s growth profile and diversified portfolio deserve at least an in-line multiple, hence our Overweight rating.” Flynn’s Overweight (i.e., Buy) rating is supported by a $51 price target, suggesting an 88% potential upside over the next year. As the 2024 elections approach, the stock market remains robust with a 20% increase year-to-date.
Although election years are typically good for the market, this year has been exceptional, marking one of the most bullish election-year markets in decades. A mix of macroeconomic factors, especially the anticipation of further Federal Reserve rate cuts, has contributed to strong investor confidence. The opinions expressed are those of the featured analysts and are intended for informational purposes only.
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