A “Strong Buy” rating from Wall Street indicates that analysts believe a stock has the potential for future price appreciation. It is typically assigned to stocks that analysts believe are undervalued or have strong growth potential in their respective industries. Let’s look at why Wall Street rates Akebia Therapeutics (AKBA) and Stoke Therapeutics (STOK) as “Strong Buys,” with shares expected to rise by 200% to 300% over the next year.
Growth Stock #1: Akebia Therapeutics
With a market cap of $451 million, Akebia Therapeutics (AKBA) is a biopharmaceutical company that develops and commercializes therapies for kidney disease. The company has two approved drugs on the market. The first is Auryxia (ferric citrate) for the treatment of hyperphosphatemia (HP) and iron deficiency anemia (IDA). In January 2025, the company launched Vafseo, a treatment for anemia caused by chronic kidney disease (CKD) in adults.
Akebia stock has gained 0.26% year-to-date.
In the fourth quarter of 2024, Akebia reported total revenues of $46.5 million, a decrease from $56.2 million in the year-ago quarter. License, collaboration, and other revenues came in at $2.1 million.
For the full year 2024, total revenues were $160.2 million. Net product revenues from Auryxia (ferric citrate) were $44.4 million in the quarter, down from $53.2 million in Q4 2023. A reduction in volume and the execution of the company’s contracting strategy with third-party payors led to this decline. The company expects Vafseo to generate $10 million to $11 million in net product revenue in the first quarter of 2025.
Being a development-stage biotech company, Akebia is still not profitable, with its net loss landing at $69.4 million in 2024. However, the company is expected to post a profit of $0.03 per share in 2026.
Akebia’s commitment to innovation is reflected in its product pipeline. The company is preparing to launch a Phase 3 VALOR clinical trial to investigate the use of Vafseo in treating anemia in late-stage CKD patients who are not on dialysis. The trial is expected to begin in the second half of 2025.
Akebia’s financial position has improved, with cash and cash equivalents of around $51.9 million as of Dec. 31, 2024. This year, the company also raised $18.4 million in share sales under its at-the-market facility. The company expects that this cash balance will fund its operations for at least two years.
On Wall Street, Akebia stock is a “Strong Buy.” All three analysts covering the stock rate it a "Strong Buy.” The average analyst target price of $7.83 suggests the stock has an upside potential of 306% from current levels. Plus, its high target price of $10 implies that the stock could rise as much as 418% from current levels.
While the potential upside is appealing, investors should be aware that Akebia is a risky penny biotech stock still in the development stage. As a result, it is better suited for investors with a longer investment horizon and a higher risk tolerance.
Growth Stock #2: Stoke Therapeutics
With a market cap of $389.9 million, Stoke Therapeutics (STOK) is a biotechnology company dedicated to treating the underlying causes of severe genetic diseases by upregulating protein expression using RNA-based medicines. The company uses its proprietary TANGO (Targeted Augmentation of Nuclear Gene Output) technology to create treatments for genetic diseases, with a particular emphasis on neurological disorders like Dravet syndrome, a severe and progressive form of genetic epilepsy.
Stoke’s stock has dipped 37% year-to-date.
The lead candidate, zorevunersen (STK-001), is being developed for Dravet syndrome. Current treatments only aim to reduce seizure frequency and do not address the underlying genetic cause, which Stoke is working on. The company will launch a Phase 3 trial in the second quarter of 2025, with pivotal data expected in the second half of 2027 to support global regulatory filings. At the end of Q4, Stoke had $246.7 million in cash, cash equivalents, and marketable securities. This strong financial position was bolstered by a $165 million payment from Biogen (BIIB) in March 2025, which was related to a new partnership and extended Stoke’s operational funding until mid-2028.
According to the agreement, Stoke will retain the rights to commercialize zorevunersen in the United States, Canada, and Mexico, while Biogen will have commercialization rights for the rest of the world. Aside from zorevunersen, Stoke is expanding its pipeline to include therapy candidates for autosomal dominant optic atrophy (ADOA), an inherited optic nerve disorder; haploinsufficient disease; and Rett syndrome. Stroke has not yet generated any product revenue. However, for the full year 2024, it generated $36.6 million in revenue from upfront license fees and services provided under a contract with Acadia Pharmaceuticals (ACAD). Net loss in 2024 totaled $89 million.
On Wall Street, Stoke stock is a “Strong Buy.” Of the 10 analysts, eight rate it a “Strong Buy,” one rates it a “Moderate Buy,” and one rates it a "Hold.” The average analyst target price of $23.88 suggests the stock has an upside potential of 245% from current levels. Plus, its high target price of $47 implies that the stock could rise as much as 580% from current levels.
