Morgan Stanley said Japanese biotech firm SanBio 's stock could rise by 398% in the next year.
The bank has a price target of 4,100 yen ($28) on the stock, which closed at 824 yen Thursday.
Morgan Stanley's bullish take on the stock, outlined in a note on global equities to clients on Oct. 28 , comes despite a delay in the approval of the company's traumatic brain injury treatment.
However, equity analysts covering the pharmaceutical sector at Nomura, Japan's largest investment bank, remain confident that the treatment will be approved.
Morgan Stanley's analysts also said the company will raise sufficient capital in its latest funding round and won't require further cash injection from shareholders.