Jefferies recently initiated coverage on the biotech sector, and analyst Brian Abrahams discusses the firm’s bullish take on the sector in a new report. Biotech has had a solid 2015 so far, but Jefferies sees further upside for a number of biotech names.

Large-Cap Fundamentals

According to Abrahams, the fundamentals of large-cap biotech stocks are “as strong as they’ve ever been.” However, Jefferies believes that stock selection among large-caps is important these days, as many large-cap stocks are now fully valued. Abrahams adds that large-cap biotechs provide a bit of diversification and defensiveness that the smaller names lack.

Smid-Caps Volatility

When it comes to small- and mid-caps, volatility remains…

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