Why Piper Sandler says biotech Edgewise is a top stock pick in 2026

Piper Sandler analyst Yasmeen Rahimi has reiterated her "overweight" recommendation on mid-cap biotech Edgewise Therapeutics and called the stock one of the best investment ideas for 2026. She expects the company’s experimental drug to outperform existing treatments in clinical trials, which could give it an advantage in commercialization, the Motley Fool writes.

Edgewise stock is among the top investment ideas for this year, according to Rahimi, whom the Motley Fool describes as one of the more bullish analysts tracking the company.

On Monday, February 9, she reiterated her “buy” recommendation on the biotech with a $51 per share target price. This implies upside of almost 69% versus the close on Monday. On that day, Edgewise shares added 4% to $30.25 apiece.

Rahimi is confident about the prospects for the company's leading cardiovascular drug candidate, EDG-7500, a treatment that targets a genetic heart condition called hypertrophic cardiomyopathy (HCM), the Motley Fool notes. In the Rahimi's view, its "novel functionality" sets it apart from HCM treatments currently on the market, which should give it an edge if it ends up being approved for commercialization.

The treatment is currently in a phase II clinical trial, with a readout expected in the second quarter.

Rahimi also highlights the potential of several other programs targeting cardiovascular disease. Edgewise’s pipeline includes a therapy being tested in patients with two forms of muscular dystrophy, diseases that involve progressive muscle weakening and can be life-threatening.

Since the beginning of the year, Edgewise shares have risen by more than 27%.

Wall Street is generally sanguine on the stock's prospects: 10 analysts rate it “buy” versus two “hold” calls. The average target price is $38.17 per share, implying upside of about 26% versus the closing price on Monday, according to MarketWatch data.