Raymond James Sees an Attractive Setup in These 2 ‘Strong Buy’ Stocks

As December draws to a close and Christmas arrives, investors are pausing to look back and assess a year that never followed a simple script. Policy uncertainty lingered, and trade headlines remained unpredictable as President Trump continued to keep markets guessing. And yet, corporate earnings held up and equities proved surprisingly resilient.Claim 70% Off TipRanks This Holiday SeasonUnlock hedge-fund level data and powerful investing tools for smarter, sharper decisions Stay ahead of the market with the latest news and analysis and maximize your portfolio's potential That staying power is exactly what stood out to Raymond James Chief Investment Officer Larry Adam, who sees 2025 as a reminder of how adaptable markets can be. “Despite heightened policy uncertainty and persistent geopolitical tensions, both proved remarkably resilient. Strong corporate earnings and AI enthusiasm propelled the S&P 500 to its third consecutive year of double-digit gains, while slowing – but still positive – economic growth and timely Federal Reserve rate cuts pushed Treasury yields lower,” Adam noted. With the calendar about to flip, Raymond James analysts are turning their focus to what comes next, identifying stocks they believe are well-positioned for 2026. Here are two names that stand out – and they’re not flying solo. According to TipRanks’ database, both carry a Strong Buy consensus from analysts across Wall Street. Lexeo Therapeutics (LXEO) Kicking off Raymond James’ list is Lexeo Therapeutics, a clinical-stage biotech taking aim at some of medicine’s toughest challenges by going straight to their genetic roots. The company is developing gene therapies for inherited cardiovascular diseases and APOE4-associated Alzheimer’s, betting that correcting the underlying biology can change the course of these conditions rather than just manage symptoms. Lexeo’s approach centers on using adeno-associated viruses (AAVs) to deliver therapeutic genes directly into affected cells, effectively using the virus as a transfer agent to put the treatment precisely where it is needed. The company’s leading program is LX2006, an AAV-based gene therapy designed to treat Friedreich’s ataxia cardiomyopathy by delivering a functional frataxin gene via intravenous dosing. In Phase I/II studies, LX2006 has shown encouraging interim results, including reductions in left ventricular mass index (LVMI), an early indicator of meaningful cardiac impact in this patient population. Based on the Phase I/II results, the FDA indicated in October that it is open to an accelerated approval pathway, including discussions around a Biologics License Application for LX2006. Pivotal data are expected in 2027, and Lexeo plans to initiate the registrational study in the first half of 2026, pending finalization of the trial protocol. In addition to LX2006, Lexeo has LX2020 at the Phase I/II stage. This drug candidate is under study for the treatment of PKP2-ACM, by delivering a functional PKP2 gene to cardiac muscle. This drug already has Orphan Drug and Fast Track designations from the FDA. A substantive update on this drug candidate is expected in January. For Raymond James analyst Christopher Raymond, this combination of advancing clinical data, regulatory momentum, and renewed investor interest in gene therapy underpins a constructive outlook for Lexeo as 2026 comes into view. “With gene therapy as a class seeing a bit of a renaissance, we think Lexeo’s setup and data to date is worth a closer look… We think Lexeo’s lead asset LX2006 is well-positioned for success in its pivotal trial, based on strong results from two Phase 1/2 clinical trials and constructive feedback from FDA. While pivotal data from this program is not anticipated until 1H27, we anticipate the stock will move next year on a finalized pivotal protocol with FDA and initial POC data on a second, unmodeled gene therapy asset – LX2020 for PKP2-ACM. We model LX2006 revenue of $14.1M, $107.1M, $255.5M, $418.1M, $599.3M and $805.3M for FY27-32, respectively,” Raymond wrote. To this end, Raymond puts a Buy rating on LXEO shares and complements that with a $25 price target that implies a ~137% upside for the coming year. (To watch Raymond’s track record, click here) That bullish view is shared across the Street. LXEO carries a unanimous Strong Buy consensus rating, with all 9 analysts rating the stock a Buy. The stock is currently priced at $10.56, and its $20.25 average price target points to a ~92% gain in the next 12 months. (See LXEO stock forecast)