JPMorgan says this biotechnology stock can rally nearly 50% because of its drug pipeline

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JPMorgan says this biotechnology stock can rally nearly 50% because of its drug pipeline
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Despite cutting $1 off the price target, the firm still expects the stock to rally nearly 49%.

Vir Biotechnology has an underappreciated opportunity in the flu prevention market, JPMorgan said. Analyst Eric Joseph upgraded the stock to overweight from neutral. He shaved $1 off his price target to $34, which still implies an upside of 48.9% from Friday's close. "Vir Biotechnology holds long-term pipeline opportunities across multiple infectious disease indications including hepatitis B, and Influenza A," he said in a note to clients Monday.

The stock could see a more than 50% upside from the study, he said, but could all fall as much as 10% if the data does not live up to expectations. The company may need to provide more visibility on RNA for shares to move more on just the trial, Joseph added. Joseph forecasted a 2027 product launch with peak net collaboration revenue of $950 million. That comes out to $5 per share.

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