Updates on 5 Biotech Names as Market Pressure Mounts
Here are five firms I'm interested in as the sector performs well.
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Market action is mixed on Tuesday morning as the Magnificent Seven (MAGS) are unable to build on Monday's big move, semiconductors are weak and data center plays are under pressure following a problematic report from CoreWeave (CRWV) . The biotechnology sector (IBB) is hitting new highs, and pharmaceuticals are also performing well.
Small-cap earnings season is just about over, and I'm sorting through the reports looking for winners and losers. I've added a number of new names to my radar and am devising trading plans for various holdings.
A new name I added after a very strong earnings report is Liquidia Corporation (LQDA) . LQDA is focused on treatments for rare cardiopulmonary diseases. Its lead commercial product is YUTREPIA (treprostinil inhalation powder), which was approved in the U.S. in 2025 for treatment of pulmonary arterial hypertension (PAH). They also have a pipeline candidate platform for drug delivery and inhaled therapies.
What caught my attention is that LQDA reported net sales of $51.7, which was over triple the consensus estimates. EPS was a loss of $0.04 versus consensus estimates of a loss of $0.33. The 2026 EPS estimate is $1.88.
According to TipRanks, based on eight Wall Street analysts offering 12-month price targets for Liquidia Technologies in the last three months. The average price target is $47.50 with a high forecast of $67.00 and a low forecast of $31.00. The average price target represents a 72.23% change from the last price of $27.58.
There is some patent litigation holding the stock back, but the chart is very attractive, with a cup-and-handle pattern forming just under resistance at $29. I've taken an initial position and will be watching for developments.
Another stock I currently hold is Harrow (HROW) . The stock initially traded down on a slight revenue miss, but it posted solid EPS of $0.33, beating estimates of $0.29. The company expects EPS of $1.79 in 2026. The average target price is a hefty $67.75, representing 80% upside from current levels. I am underwater on my cost basis at this point, but will continue to build the position.
I also recently mentioned NeoVolta (NEOV), a very small stock with a market cap under $200 million. Its earnings report on Tuesday morning was solid, with revenue up seven-times year over year. It is the third straight quarter of record sales, and it appears to have strong operational momentum. The stock is trying to move back over the 50-day simple moving average.
Another biotechnology name that looks very good technically is BidgeBio (BBIO). Goldman Sachs (GS) has a $100 target on the name and recently commented, "BridgeBio's transition toward a multi-product, profitable biotech remains on track, offering further upside potential."
Finally, Mereo BioPharm (MREO) released its quarterly report, which didn't contain anything notable, but, most importantly, it is on track to release significant data on its drug for Brittle Bone Disease in December or January. I'm anticipating a strong run-up into this news, which will likely double the price if it is favorable.
I'll have more updates soon. Let me know if there are any specific names you'd like me to cover.
At the time of publication, DePorre was long LQDA, HROW, NEOV and MREO.
