Wouldn't it be nice to double your money with an investment?
Well, the team at Bell Potter thinks it could be possible with the ASX 200 stock in this article.
Though, it warns that this stock is a speculative pick and therefore not suitable for everyone.
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Which ASX 200 stock?
The stock that has been tipped to rocket is Clarity Pharmaceuticals Ltd (ASX: CU6).
It is a clinical stage radiopharmaceutical company with a focus on the treatment of serious diseases.
Management notes that it is a leader in innovative radiopharmaceuticals, developing targeted copper theranostics based on its SAR Technology Platform for the treatment of cancers.
Last week, the ASX 200 stock announced positive results from the diagnostic Phase II DISCO trial (NCT04438304) with 64Cu-SARTATE in patients with known or suspected neuroendocrine tumours (NETs).
According to the release, 64Cu-SARTATE thoroughly outperformed the current standard of care.
This is great news given that the NET diagnostic market in the US is currently around 100,000 scans per year. This is expected to grow to approximately 120,000 scans per year by 2029.
What is Bell Potter saying?
This morning, Bell Potter responded positively to the announcement. Commenting on the news, it said:
The DISCO study is a phase 2 trial investigating the diagnostic capabilities of 64Cu SARTATE for the detection of neuroendocrine tumours (NETs). These are a relatively rare form of cancer originating from dysfunctional neuroendocrine cells. NETs are currently diagnosed by conventional imaging technologies including MRI and PET/CT with 68Ga DOTATATE as the incumbent PET agent. DISCO was a head-to-head study of 64Cu SARTATE v 68Ga DOTATATE with the results overwhelmingly pointing towards SARTATE being the superior agent.
In light of this, the broker has retained its speculative buy rating with a $4.90 price target.
Based on its current share price of $2.22, this implies potential upside of 120% for investors over the next 12 months.
To put that into context, a $2,500 investment in this ASX 200 stock would turn into $5,500 by this time next year if Bell Potter is on the money with its recommendation. Though, with a speculative rating, it could as easily go the other way.
Commenting on its buy rating, the broker said:
The DISCO data provides an outstanding platform from which to launch a future approval trial. The early data suggests 64Cu SARTATE is superior to the standard of care for detection of NET's in addition to having an outstanding safety profile. No changes to earnings, Retain Speculative Buy, Valuation is amended to $4.90 (from $5.20) following modest amendment to the WACC as a result of weaker sector performance in biotechnology stocks.
