Why AnaptysBio Stock Is Up Nearly 8 Percent This Week

Many stocks have wobbled over the past few trading sessions, but biotech companiesAnaptysBio (NASDAQ resonance code: ANAB)The situation is not encouraging. According to data compiled by S&P Global Market Intelligence, the company's shares closed the week up nearly 8%, thanks to a research report from a high-profile and influential bank.

Wells Fargo's Outstanding Performance

Thursday before rock.Wells Fargo(NASDAQ: ANAPTYSBIO) added to its holdings in AnaptysBio, Inc. with a Buy recommendation and a price target of $56 per share. This is very bullish for the company, as its recent closing price of $22.71 was less than half of that.

In the bank's view, the biotech company is grossly undervalued because its product line is a "sleeper product" among investors.

Wells Fargo highlighted AnaptysBio's rosnilimab, which, in the company's words, "reduces inflammation in overactive T-cells" (T-cells are white blood cells that help people fight infection). According to Wells Fargo, rosnilimab is a good match for drug giantEli LillyThe company is highly competitive with peresolimab, which is currently in development.

Potential Double Dose

While it may seem exaggerated to some that the stock price is expected to rise by more than 100%, such an increase is not uncommon in the biotechnology field, especially for companies like AnaptysBio that are in the clinical pipeline. If an investigational drug performs well in clinical trials and is brought to market, the company behind it can reap significant rewards. Wells Fargo clearly believes that AnaptysBio has a shot at rosnilimab; we will see if it can realize that potential.

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Wells Fargo & Co. is an advertising郃 partner of The Ascent, a Motley Fool company.Eric Volkman does not own any of the above stocks.The Motley Fool recommends AnaptysBio.The Motley Fool has a disclosure policy.

Why is AnaptysBio stock up nearly 8% this week?