Barring a huge meltdown, the S&P 500 will once again have a double-digit year of gains, and most investors should be looking at their 401(k)s and other accounts with some added holiday cheer. One thing is for sure: 2018 will be a year for stock picking, because passive investing is forcing more and more dollars into a small group of mega-cap stocks, and that could be laying the groundwork for a sizable move down next year.

With that in mind, we screened the Jefferies top stock picks from a recent research report and found four momentum biotech plays that still have solid upside to the Jefferies price targets and would be solid additions to aggressive accounts with higher risk tolerance. All are rated Buy.

AnaptysBio

This is a lesser known biotech with big upside potential. AnaptysBio Inc. (NASDAQ: ANAB) is engaged in developing antibody product candidates focused on unmet medical needs in inflammation and immuno-oncology. The company develops its product candidates using its antibody discovery technology platform, which is designed to replicate, in vitro, the natural process of antibody generation.

The company’s product pipeline includes ANB020 and ANB019, which are being developed to treat severe inflammatory disorders with unmet medical need. The company’s ANB020 product candidate is an antibody that inhibits the activity of interleukin-33 and is used for the treatment of severe adult asthma and severe adult peanut allergy. The analysts at Jefferies noted this in the research report:

AnaptysBio is due to readout Phase 2 data in adult severe peanut allergy in the first quarter of 2018 and we see potential for ANB020 to confer tolerance against ~1 peanut or better in 35-50% of trial patients. If the data reads out as we expect, we think this would bode well for it to surpass peanut immunotherapy efficacy at 6, 9 and 12+ month timepoints in future trials. Depending on the strength of the data readout, we think shares could be up $20-$30.

The Jefferies price target for the stock is a healthy $102, and the Wall Street consensus target is $84.39. The shares closed trading Friday at $84.39.

Allena Pharmaceuticals

Investors looking for a small cap play could be very interested in this company. Allena Pharmaceuticals Inc. (NASDAQ: ALNA) is focused on developing and commercializing non-systemic oral protein therapeutics to treat metabolic and orphan diseases, with a particular focus on nephrologic and urologic conditions. Its lead product candidate, ALLN-177, is in an ongoing Phase 2 clinical trial and is being developed for the chronic management of hyperoxaluria and kidney stones.

ALLN-177 is an orally administered, recombinant oxalate-degrading enzyme. It targets oxalate in the gastrointestinal tract to reduce the burden of both dietary and endogenously produced oxalate. ALLN-177 has the potential to decrease the oxalate available systemically for deposition as calcium oxalate crystals or stones in the kidneys, as well as to reduce the incidence of calcium oxalate related complications.

Jefferies had this say about the company:

ALLN-‘177 has completed Phase 2 for enteric hyperoxaluria, demonstrating both safety and meaningful effect. The company has an upcoming meeting with the FDA (late 2018 or early 2018) to go over the Phase 3 efficacy endpoint and the procedure for a BLA filing, which we believe could be a catalyst for shares. We expect this to lead to the start of a Phase 3 study in the first quarter of 2018. We see blockbuster potential for ALLN-177 and model $624 million in peak-adjusted sales.

Jefferies has a $22 price objective, which compares with the posted consensus target of $24.67. The stock closed Friday at $14.00 a share.

Axogen

This is another biotech/medical technology stock that Jefferies recently started coverage on with a Buy rating. Axogen Inc. (NASDAQ: AXGN) offers surgical solutions for peripheral nerve injuries. The company provides products and education to improve surgical treatment algorithms for peripheral nerve injuries. Its portfolio of products includes Avance Nerve Graft, AxoGuard Nerve Connector, AxoGuard Nerve Protector and Avive Soft Tissue Membrane.

The company also offers the AxoTouch Two-Point Discriminator and AcroVal Neurosensory and Motor Testing System. These evaluation and measurement tools assist health care professionals in detecting changes in sensation; assessing return of sensory, grip and pinch function; evaluating treatment interventions; and providing feedback to patients on nerve function.

Jefferies is very positive on the shares and noted this:

Axogen targets an underserved nerve repair market, a $2.2 billion opportunity and market that is just 3% penetrated, Historically, nerve injuries were repaired using nerves harvested from the patient’s body. The company offers off-the-shelf tissue products for nerve repair and estimates there are over 900k injuries a year that could be treated with its products. The clinical community is also finding new uses for Axogen’s products which offers upside to current forecasts. We forecast growth in the 35-40% range through 2021 at least.

The $35 Jefferies price target is well above the consensus price objective of $27.17. The shares ended last week at $26.40 apiece.

Intercept Pharmaceuticals

This biotech story has stayed out front on Wall Street for years. Intercept Pharmaceuticals Inc. (NASDAQ: ICPT) is a biopharmaceutical company focused on the development of treatment for chronic liver disease using its expertise in bile acid chemistry. The lead product candidate, obeticholic acid (OCA), is approved for the treatment of primary biliary cirrhosis (PBC) and in Phase 3 trials for the larger nonalcoholic steatohepatitis (NASH), a common but often “silent” liver disease.

The Jefferies analysts had this to say about the prospects for the company going forward:

There have been safety concerns around the Primary Biliary Cholangitis (PBC) franchise, but we don’t believe the drug will be removed from the market and we believe PBC is at least a $300 million indication, which suggests that the stock gets little credit for NASH. NASH could be $1 billion to $2 billion in sales and the market cap of the company as a whole is only $1.5B. Discussions with management suggest that a label revision could come by early 2018 and if changes aren’t that bad, such an event could help remove the overhang. Interim NASH analysis comes in the first half of 2019.

Jefferies has put a stunning $135 price target on the stock. That compares with the consensus target of $132.47. The stock was last seen trading at $61.21 per share.

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These hot momentum plays are designed for aggressive accounts with big risk tolerance so it makes sense to apply capital accordingly. That said, they all have big upside and any one could be the proverbial home run.

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