Jefferies Predicts Up to ~1000% Surge for These 2 ‘Strong Buy’ Stocks

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There’s been something of a sea change in the economic outlook for 2025, in the aftermath of last month’s election. The prospect of a second Trump administration, with his known preference for deregulation and tax cuts, has market watchers expecting a growth-friendly environment.

Desh Peramunetilleke, Jefferies’ Global Head of Quantitative Strategy, notes that reduced regulation, combined with the potential for lower corporate tax rates, could significantly boost the biotech sector, with smaller biotech stocks poised to benefit the most.

“Our recent analysis concluded with a near-term preference for smaller-cap biotech names in the US… Trump’s win brings new market dynamics into play. Firstly, his policies concerning taxation and government regulation imply a more risk-on environment, encouraging investments and M&A activity. This is conducive for rerating of the smaller biotech names,” Peramunetilleke explained.

Following his lead, Jefferies stock analysts have picked two small biotech stocks with strong upside – including one with a potential gain of nearly 1,000%.

In fact, Jefferies analysts are not the only ones singing the praises of these stocks. According to the TipRanks database, they are both rated as ‘Strong Buys’ by the analyst consensus. Let’s dive into what makes these stocks such compelling investment opportunities right now.

Metagenomi (MGX)

The first Jefferies pick we’re looking at is Metagenomi, a biotech innovator unlocking the potential of gene editing through the power of metagenomics. This approach focuses on identifying microbial genetic systems shaped by nature and adapting their enzymes into precise tools for addressing various diseases. By leveraging the vast genetic diversity found in nature, Metagenomi aims to develop therapeutic solutions that could contribute to meaningful advancements in modern medicine.

The company’s flagship candidate, MGX-001, is a novel therapeutic agent targeting hemophilia A (hemA). Last quarter, Metagenomi announced an important achievement, reaching durable Factor VIII activity levels over a one-year period in an NHP (non-human primate) study. The company has gone on to initiate IND-enabling activities for MGX-001 as a regulatory step toward moving the program to the human clinical trial stage.

But Metagenomi isn’t stopping there. Through a partnership with Ionis Pharmaceuticals, the company is integrating RNA-targeted therapeutics with its gene-editing systems. This collaboration focuses on cardiometabolic development programs, initially targeting four conditions, including transthyretin amyloidosis (TTR) and refractory hypertension (AGT). Currently in the lead optimization phase, these programs have demonstrated proof-of-concept in rodent models. Looking ahead, Metagenomi plans to nominate one to two development candidates by 2025.

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