Raymond James Sees an Attractive Setup in These 2 ‘Strong Buy’ Stocks
Raymond James analysts are highlighting two "Strong Buy" stocks, Lexeo Therapeutics (LXEO) and Phathom Pharmaceuticals (PHAT), for 2026, anticipating strong performance in the coming year. Lexeo, developing gene therapies for inherited cardiovascular diseases and Alzheimer's, is backed by advancing clinical data and regulatory momentum, with significant revenue projections for its lead asset. Phathom Pharmaceuticals, which focuses on acid-related GI issues, shows promising revenue growth for its approved drug Voquezna, combined with improving cost discipline and new leadership, signaling an attractive long-term risk/reward scenario.
How this was made
The 30-second read
Why it matters
The positive outlook may lead to increased investor interest and stock price appreciation, especially if clinical milestones are met.
Market read
The biotech sector is poised for growth driven by innovative therapies, with LXEO and PHAT representing promising candidates.
What to watch
Market competition, pricing pressures, and reimbursement challenges could limit revenue growth despite positive clinical data.
Background
Raymond James analysts identify LXEO and PHAT as attractive investment opportunities for 2026 based on recent clinical and financial developments.
Ticker impact
High relevance due to positive clinical data and regulatory momentum in gene therapies for cardiovascular diseases and Alzheimer's.
Expected moderate to significant increase in stock price (+15% to +25%) over the next 12 months, contingent on clinical trial outcomes and regulatory approvals.
The combination of advancing clinical data, supportive regulatory environment, and strong revenue projections provides a solid basis for positive stock performance. However, clinical trial risks and regulatory hurdles remain.
High relevance given its promising revenue growth and strategic management changes in the GI therapeutics sector.
Potential moderate increase in stock price (+10% to +20%) over the next 12 months, depending on sales performance and operational improvements.
Revenue growth and leadership changes support positive outlook, but market competition and product adoption rates introduce uncertainties.
Market effects
Positive impact on the biotech and pharmaceutical sectors, potentially boosting sector ETFs and related stocks.
Primarily US-focused, with potential influence on global biotech markets due to pipeline and revenue prospects.
Moderate, as advancements in gene therapies and GI treatments have international market implications.
Counterpoint
Potential setbacks in clinical trials or regulatory delays could negatively impact LXEO and PHAT stocks, leading to underperformance or declines.
Key entities
- Biotech CompanyLexeo Therapeutics
Developer of gene therapies targeting inherited cardiovascular diseases and Alzheimer's.
- Biotech CompanyPhathom Pharmaceuticals
Focuses on treatments for acid-related gastrointestinal conditions, with a flagship drug Voquezna.
