3 Biotech Stocks Wall Street Analysts Are Bullish on for 2026

Industry Overview - The biotech sector has shown a strong recovery in 2025, with the Nasdaq Biotechnology Index rising by 33.1% year to date after bottoming out in April 2025 due to potential steep tariffs impacting the pharma and biotech sectors [1][2] - Key drivers of this rally include new drug approvals, a positive pipeline, regulatory updates, and a surge in mergers and acquisitions (M&A) activity, with the FDA approving over 42 drugs so far this year [2][3] M&A Activity - The year has seen a significant increase in M&A activity, driven by the changing landscape and focus on AI-driven drug discovery, as large pharmaceutical and biotech companies seek to expand and diversify their product portfolios amid rising generic competition [3] Regulatory Agreements - The Trump administration has signed agreements with major pharma and biotech companies, including Gilead Sciences, Amgen, Merck, and Novartis, aimed at lowering prescription drug prices for chronic conditions [4] - These companies are expected to collectively invest at least $150 billion in domestic production in the near term, indicating a commitment to innovation in medical treatments [5] Company Highlights EyePoint, Inc. (EYPT) - EYPT focuses on developing innovative therapeutics for serious retinal diseases, with its lead candidate, Duravyu, being evaluated in late-stage studies for wet age-related macular degeneration [7][11] - EYPT's shares have surged by 140.5% in 2025, with a current average target price of $34.18 representing an upside of 100.35% [12] ANI Pharmaceuticals (ANIP) - ANIP is a diversified biopharmaceutical company with a strong focus on rare diseases, particularly through its ACTH-based injection, Cortrophin Gel, which saw sales jump by 70% year over year to $236 million in the first nine months of 2025 [13][14] - The stock has gained 52.9% over the year, with a current average target price of $109.25 representing an upside of 31.9% [16] Tango Therapeutics (TNGX) - Tango Therapeutics is focused on precision oncology, developing treatments based on synthetic lethality for specific tumors, with promising pipeline candidates including PRMT5 inhibitors for various cancers [17][19] - TNGX shares have increased by 163.8% in the past year, with a current average target price of $13.22 representing an upside of 56.26% [21]