Shares of Iovance Biotherapeutics (IOVA 10.89%) were jumping 10.9% higher as of 11:49 a.m. ET on Monday. The nice gain came after Goldman Sachs initiated coverage on Iovance stock with a buy recommendation.
Investors no doubt liked Goldman Sachs’ 12-month price target of $12 for Iovance. Analyst Andrea Tan thinks the biotech stock has an upside potential of more than 100%.
Why does Wall Street like Iovance so much?
Goldman Sachs isn’t the only Wall Street firm that thinks highly of Iovance. All seven of the analysts covering Iovance who were surveyed by LSEG in November rate the stock as either a buy or strong buy.
There’s a simple reason why Wall Street likes Iovance so much these days. The U.S. Food and Drug Administration (FDA) has set a PDUFA date of Feb. 24, 2024, for its approval decision of lifileucel in treating advanced melanoma. Iovance is ramping up for an immediate U.S. launch, pending FDA approval. The company also expects to submit several other regulatory submission in the first half of 2024 with hopes to expand into Europe and other markets.
Is Iovance Biotherapeutics stock a buy?
Investors shouldn’t buy any stock just because a Wall Street analyst likes it. Risk-averse investors, in particular, will probably be better off considering less volatile stocks.
However, Iovance Biotherapeutics could easily be worth a lot more than its current market cap of $1.4 billion if lifileucel wins regulatory approvals and enjoys a successful launch. My view is that this promising biotech stock is a good candidate to buy for aggressive investors.
Keith Speights has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Goldman Sachs Group and Iovance Biotherapeutics. The Motley Fool has a disclosure policy.