J.P. Morgan’s top Healthcare stocks for 2025

J.P. Morgan’s U.S. equity analysts picked their top stocks for 2025, selecting “the most compelling investment ideas” across every sector.

These are the healthcare stocks (NYSEARCA:XLV) highlighted:

Vertex Pharmaceuticals Inc. (VRTX) – Price target: 503.00

Analysts say this is one of the highest quality names in their coverage and a core large-cap biotech stock “given a durable and dominant high margin cystic fibrosis franchise and progressing pipeline.”

Travere Therapeutics (TVTX) – Price target: 42.00

J.P. Morgan sees continued launch momentum for Filspari in IgAN medications and a positive outlook for products for kidney disease.

“We can comfortably see Travere (TVTX) shares doubling on regulatory progress [and] approval in the FSGS (focal segmental glomerulosclerosis, a kidney disease) indication,” analysts said.

Blueprint Medicines Corp. (BPMC) – Price target: 126.00

Since the company got its approval for Indolent Systemic Mastocytosis (or ISM) disease medicine Ayvakit, the company has increased its revenue run rate to about $500M annually.

“While we do expect seasonal choppiness in the coming quarters, we believe Ayvakit peak sales [puts the company] well on track towards $2B guidance,” analysts said. “With the launch… will see continued growth, also driven by favorable real world patient experiences to date.”

Xenon Pharmaceuticals (XENE) – Price target: 63.00

This company is poised to rally in 2025, according to J.P. Morgan.

“We anticipate phase 3 trials evaluating azetukalner as an adjunctive treatment in epilepsy to begin to read out in 2025, starting with topline X-TOLE2 results in focal onset seizures in [the second half of 2025.]”

“We see azetukalner as well positioned to see robust uptake in the adjunctive epilepsy space if the trials are positive, which we would expect.”

HealthEquity Inc. (HQY) – Price target: 110.00

HealthEquity is “our favorite near-term opportunity given the strong fundamental trajectory over the next 3 years, driven by HSA market penetration and higher interest rates relative to [years 2020-2022],” J.P. Morgan analysts said.

“Our model points to about 20% three-year EBITDA CAGR (FY24-FY27), with the company doubling its EPS over that period, driven by top-line growth and 700 basis points of margin expansion.”

Thermo Fisher Scientific (TMO) – Price target: 670.00

Thermo Fisher is still “best positioned to gain share across its end-markets behind its large commercial engine and superior portfolio.”

“We see a number of potential upside opportunities in 2025 for Thermo Fisher (TMO) such as China stimulus, biotech funding improvement, Biosecure Act related share gains in the CDMO (contract development and manufacturing organization), and faster acceleration in bioprocessing recovery.”

Cencora Inc. (COR) – Price target: 289.00

The pharmaceutical distributors are relatively well positioned compared to other areas in the healthcare world, analysts said. They are less exposed to regulatory scrutiny.

“Entering 2025, we see Cencora’s (COR) guidance demonstrating management’s continued strong execution, while the acquisition of Retina Consultants of America supports Cencora’s specialty strategy.”

“Given the underlying strength of the U.S. business, we believe Cencora (COR) is well positioned to continue executing along their longer-term operating targets as the company builds on momentum in expanding their capabilities to drive growth within attractive specialty and pharma markets.”

Boston Scientific Corp. (BSX) – Price target: 110.00

In 2024, the company “cemented itself in the elite double-digit sales growth class of large cap companies, with momentum to continue into 2025 with multiple shots on goal across the business,” analysts said.

Eli Lilly and Co. (LLY) – Price target: 1,100.00

This company is “the cleanest name in our sector.”

“The stock’s recent pullback has created a more attractive entry point for what has perpetually been an expensive story,” analysts said. “From here, we see a clear path for the stock to recover driven by a strong and highly defensible position in an unprecedentedly large T2D/Obesity market, strong core prescription trends for Zepbound/Mounjaro as capacity ramps and promotion efforts take hold and a number of clinical catalysts including ph3 data for Lilly’s oral GLP-1 orforglipron (for mid-2025).”

PTC Therapeutics Inc. (PTCT) – Price target: 74.00

“We see the Street undervaluing the >$1B peak sales potential for sepiapterin in PKU, benefited by improved efficacy and expanded breadth over incumbent commercial assets,” analysts said. “We see 2024’s trend of constructive FDA interactions continuing with votoplam as the company seeks to secure an accelerated approval path in Huntington’s disease, setting up for materially higher upside reaction to expanded 12-month PIVOT-HD results.”

J.P. Morgan sees its shares “further benefiting from a broader investor base, altogether outperforming the group in 2025.”