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As market volatility rattles investor confidence worldwide, Piper Sandler has unveiled a strategic lineup of eight defensive growth stocks within the biopharmaceutical sector. This announcement follows a turbulent period where equities experienced a 3% dip in the S&P 500 on Monday, catalyzed by a lackluster U.S. jobs report.
Although the benchmark index displayed signs of recovery throughout the week, Piper’s distinguished analyst, Christopher Raymond, and his team highlighted the resilience of the biopharma industry against macroeconomic challenges. The market dynamics favoring many treatments exhibit a degree of demand elasticity, insulating them from broader market fluctuations.
In response to the current global market turmoil, characterized by pervasive sell-offs and potential interest rate adjustments, Piper Sandler advocated for a strategic investment approach focused on a select group of high-quality defensive growth stocks as a prudent risk mitigation strategy.
The recommended biopharma entities showcase attributes such as resilience, sustainable growth potential, robust asset portfolios, and resistance to economic downturns. Piper’s portfolio recommendations encompass a diversified range of defensive biotechnology firms:
- Alnylam Pharmaceuticals (NASDAQ:ALNY)
- argenx (NASDAQ:ARGX)
- BioCryst Pharmaceuticals (NASDAQ:BCRX)
- BioMarin Pharmaceutical (NASDAQ:BMRN)
- Catalyst Pharmaceuticals (CPRX)
- Cytokinetics (CYTK)
- Legend Biotech (LEGN)
- Sarepta Therapeutics (SRPT)
Highlighting their conviction, Piper Sandler has assigned each of these stocks an Overweight rating, accompanied by per-share price targets set at $296, $553, $20, $107, $26, $107, $90, and $205, respectively.
