4 Beaten-Down Stocks That Could Skyrocket by 50% to 543%, According to Wall Street

As biotech investors know, companies in the industry can sometimes earn significant returns in relatively short periods, like a year, thanks to excellent clinical or regulatory progress. And based on Wall Street's projections, several notable biotechs could see their shares soar in the next 12 months.

Of course, it wouldn't be wise to rush to invest in these companies for that reason alone, but it might be worth looking deeper into what the Street considers severely undervalued drugmakers. Read on to learn more about four biotechs with price targets that imply significant upsides (based on prices as of Apr. 3) of between 50% and 543% in the next year.

A gene-editing leader with a major claim to fame

Of the pure-play gene editing specialists on the market, CRISPR Therapeutics (CRSP 14.16%) is one of the more prominent. In 2023, it earned approval for Casgevy, a therapy for two rare blood diseases with few treatment options. Casgevy became the first CRISPR-based medicine approved -- this technique earned its creators a Nobel prize in chemistry. However, CRISPR Therapeutics has been in free-fall mode since Casgevy's approval, partly because administering it is complex. The biotech has yet to record much sales from it.

Yet, Wall Street has high expectations. Its average price target is $84.62 (according to Yahoo! Finance), which implies an upside of 159%. Don't count on CRISPR Therapeutics hitting that target in the next year, but it might still be a terrific investment for long-term investors. Casgevy has blockbuster potential, even considering CRISPR Therapeutics will share the spoils with Vertex Pharmaceuticals with which it developed the treatment.

Further, CRISPR Therapeutics has a pipeline with several other exciting candidates, including a potential functional cure for type 1 diabetes and a promising investigational cancer treatment. Though the stock is somewhat risky, those comfortable with volatility might want to consider initiating a small position.

A biotech with an innovative cancer-fighting approach

Iovance Biotherapeutics (IOVA 7.68%) is an oncology specialist that develops therapies from patients' own tumor-infiltrating lymphocytes (TILs), which are cancer-fighting white blood cells. The company has already shown significant promise. Last year, it earned approval in the U.S. for Amtagvi to treat melanoma (skin cancer). Though the manufacturing process for this medicine takes some 34 days, Iovance Biotherapeutics has ramped up sales for its leading product.

It ended 2024 with revenue of $164.1 million after reporting barely any the year before. Still, the expensive manufacturing process required for Amtagvi is leaving the market somewhat unimpressed. Can Iovance Biotherapeutics turn a profit with this medicine (and others like it) at the forefront? The Street thinks differently and currently has a price target of $20.91, implying an upside of 543%.

Again, the stock won't skyrocket that much in the next 12 months, but there are some potential catalysts on the way. Iovance Biotherapeutics expects regulatory approval for Amtagvi in many other countries. The company will continue treating patients in the U.S., where there are more than 20,000 patients who could benefit from it. Further, Iovance Biotherapeutics could see more clinical wins with its crown jewel in key potential indications, including in lung and cervical cancer.

Iovance Biotherapeutics could be a steal at current levels for patient, risk-off investors.

A drugmaker with one of the world's top-selling drugs

Regeneron (REGN 1.38%) is a well-established biotech company that generates consistent revenue and profits. However, the drugmaker encountered issues with one of its main growth drivers, Eylea, which treats wet age-related macular degeneration. Eylea is facing stiff competition, biosimilar and otherwise. These Eylea-related problems have led to its share price falling recently. Wall Street is valuing the stock differently. It has a price target of $914.55, implying the stock could soar by 50%.

One catalyst could lead to major gains for Regeneron. It is in a legal battle with Amgen over the legality of the latter's Eylea biosimilar. If Regeneron wins the case, its shares will rocket. Even if it doesn't, Regeneron looks attractive. The company's other growth driver, eczema treatment Dupixent, is one of the world's best-selling medicines. Newer indications, especially in treating COPD, will strengthen Dupixent's empire.

Further, Regeneron has a deep pipeline, including a promising gene therapy for genetic deafness showing impressive results in early-stage studies. Regeneron remains a top stock to buy and hold, especially given its newly initiated dividend program and long-standing share buybacks.

A rare disease specialist with a recent major setback

Sarepta Therapeutics (SRPT 1.07%) develops gene therapies for rare diseases, especially a genetic, progressive, muscle-wasting disorder called Duchenne muscular dystrophy. Its newest approval, Elevidys, targets the underlying genetic causes of this condition. It has been successful since it first hit the market in 2023 but recently encountered a significant roadblock. Sarepta Therapeutics reported that one patient treated with Elevidys had died from acute liver failure.

Liver problems are a known potential side effect of Elevidys, but no patient had died from it. Was Elevidys responsible? It's not clear. This patient had also recently suffered a cytomegalovirus infection, which can affect the liver too. Some Wall Street analysts have adjusted their price targets for Sarepta Therapeutics following these developments, but the average is still $165.35, implying an upside of 182%.

Sarepta's shares will soar in the next 12 months if it is revealed that Elevidys wasn't responsible, but not by that much. Considering the uncertainty involved, I'd advise against investing in the biotech until we know more. Sarepta Therapeutics is an innovative company, but it might not be the best investment option right now.