Last week marked the best week for biotechs since the start of 2017. The sector spiked following some unexpected positive rhetoric from President Trump suggesting an executive order on drug prices rather than regulatory control. However, while there is uncertainty ahead, the rally in biotech stocks is far from over. We wanted to find five biotech stocks that present a compelling investing opportunity. Given the risk inherent in the sector it is important to pick stocks wisely- and choosing stocks recommended by top analysts is one way of pinpointing top biotech stocks.

How to find top-rated biotech stocks

We ordered the results by upside potential as this is a crucial indicator of how well the stock can perform in the next 12 months.

Now let’s see which five top biotech stocks have the Street’s seal of approval:

1. Mediwound (MDWD) – on June 27 the news broke that BARDA (the Biomedical Advanced Research and Development Authority) is investing $22 million in Mediwound’s burn treatment, as part of a $112 million agreement signed in 2015. “We view this as an excellent source of non-dilutive funding and an external commitment that highlights the value and benefits of NexoBrid” commented Oppenheimer analyst Jay Olson. On June 26, he reiterated his buy rating and $10 price target. This comes in just below the average analyst price target of $10.25- which suggests incredible upside potential over the next year of over 47%.

2. BioDelivery Sciences (BDSI) – as the name suggests, this biotech focuses on improving drug delivery methods for pain management and addiction medicine. Top analysts are predicting a whopping 51% upside from the current $2.80 share price. On June 23, four-star H.C.Wainwright analyst Corey Davis reiterated his buy rating with a $4 price target (42% upside). He says “We are encouraged by the latest positive prescription trends [for Belbuca], as well as by this week’s news that CVS/Caremark has provided favorable access at least through 2020, and by today’s announcement of Canadian approval [for Belbuca].” Belbuca will now be launched in Canada in early 2018.

3. Portola Pharma (PTLA) – shares of this biotech soared by 47% at the end of last week after PTLA received “broad label” FDA approval for betrixaban to prevent venous thromboembolism (VTE) in adult patients hospitalized for acute medical illness who are most at risk of developing VTE. And the rally for PTLA isn’t over yet according to the Street. Following the approval, four top analysts reiterated their buy ratings with an average price tag of $71 representing just over 30% from the $54 current share price. Citigroup analyst Yigal Nochomovitz is the most bullish, raising his price target from $51 to $78 on June 26 as post-approval owning the stock for a potential takeover is now “even more logical.”

4. Alexion Pharmaceuticals (ALXN) – limiting the ratings to only those from best performing analyst ratings reveals that this biotech giant- which develops drugs for devastating and rare diseases- has a strong buy analyst consensus rating. Meanwhile the average analyst price target suggests 22% upside from the current share price. And it’s not just the Street that’s bullish- so are hedge fund managers. The stock has a “Very Positive” rating from fund managers with five-star Arthur Cohen ramping up his healthcare fund’s ALXN holding by 263% in Q1 to $115M.

5. Cutera (CUTR) – this biotech specializes in face and body aesthetic solutions. This breaks down into a wide range of products that can remove various elements of the body including cellulite, pigmentation, hair, veins and acne scars. Top Gabelli analyst Jennie Tsai called CUTR one of the best ideas for 2H 2017. She believes that revenue should increase due to sales force expansion and new products, which have been boosted by recent laser dermatology acquisitions. Tsai reiterated her buy rating on Cutera on June 27 with a $33 price target which translates into an incredible 29% upside from the current share price.