With 2025 winding down, many investors are still looking for new ideas for their 2026 investing strategy. The biotech sector has long been a rewarding sector for many investors, but it obviously comes with major risks. Biotech stocks often come with lofty valuations based on drug sales expected five years or more into the future. And some analysts make their bold predictions even before drugs are approved.
BofA Securities has updated its top biotech picks for 2026 and he upside of those top picks is calling for 25% to 100% gains. That also means that everything has to go right for these stocks. Biotechs are generally considered more risky than diversified pharmaceuticals, so the implied upside generally has to be much higher than the 8% to 12% implied upside seen for most pharma stocks.
Are strategic investors supposed to go all-in on the biotech theme to continue in 2026 after the NYSE Arca Biotechnology index was up over 25% heading into the end of 2025?
The top biotech picks and the outlooks provided are summaries from BofA’s 2026 outlook. These ratings and price targets belong to BofA. Oggonomics does not have any formal ratings and price targets on any of these companies.
As a reminder, investors should never use a single research report as their sole reason to buy or sell any stock. That is particularly true in riskier biotech stocks where Wall Street analysts have many different opinions. A consensus price target has been included to show how much more aggressive BofA may be versus other analysts covering the same stocks.
Argenx SE (ARGX) was named a new top pick at BofA, with a Buy rating and $1,006 price objective. The focus is Vyvgart’s commercial launch in gMG and CIDP after consistently beating expectations. BofA expects continued momentum from PFS approval and geographic expansion with peak sales modeled at $6.8 billion in gMG and $4.5 billion in CIDP. Argenx’s four phase 3 readouts (oMG, myositis, MMN, ITP) plus early-stage pipeline updates are expected in 2026 and provide upside opportunities.
Argenx SE was at $850 and its 52-week range is $510.06 to $934.62. Its market cap is roughly $54 billion for its ADSs. The consensus price target for argenx is $1,011.
KalVista Pharmaceuticals (KALV) remains a top pick for 2026, with a Buy rating and $30 price objective. This represents roughly 100% implied upside if their call proves correct. It has a 52-week range of $7.30 to $17.30 and its market cap is $758 million. The consensus price target for KalVista is $31.
BofA’s bullish outlook on Ekterly is in on-demand HAE post-July 2025 approval as the first approved oral on-demand therapy well-positioned for market share capture. KOLs estimate up to 60% of HAE patients could use Ekterly with adequate payor coverage, with a key focus on finalized payor policies expected early 2026. BofA models FY/2026 sales of $102.8 million and peak sales of $685 million.
Ocular Therapeutix (OCUL) is a top small cap pick with a Buy rating and $21 price objective. This represents more than 50% implied upside from the current $13.00 share price, with a 52-week range of $5.79 to $16.44 and a market cap of $2.8 billion. The consensus price target for Ocular Therapeutix is actually even higher at $24.
BofA sees Ocular’s pivotal SOL-1 topline readout in Q1/2026 expected to support Axpaxli’s differentiated long-acting profile in wet AMD with readthrough to SOL-R study. It is considered the first-to-market potential in long-acting injectable class. BofA models $2.4 billion in nominal peak sales with an anticipated 2027 launch.
Vertex (VRTX) is a top pick with a Buy rating and $571 price objective. Vertex was recently at $$447 and has a 52-week range of $362.50 to $519.68. Its market cap is $113 billion. Vertex has a consensus price target of $489.
Vertex is considered the CF leader expanding into new therapeutic areas. Its phase 3 readout for pove in IgAN is considered a key catalyst with accelerated approval submission planned for the first half of 2026. Pove has best-in-class potential in IgAN with expansion plans into pMN and gMG. CF franchise contributes $511/share to Vertex’s price objective.
As a final reminder and disclaimer, analysts can get their thesis wrong and fundamentals can change rapidly 9particularly in more speculative biotech stocks). And please keep in mind that no research reports ever come with money-back guarantees in the event that investors lose money or their price expectations do not come to fruition.
