The chaos gripping global markets is showing no signs of abating just yet, with the major indexes bleeding heavily at the start of the week.

The ultimate near-term impact of COVID-19 is difficult to quantify, noted a recent Needham research report. While the investment firm notes that no name is immune from the inevitable slowdown in economic activity caused by a global pandemic, there are some better positioned to cushion the blows.

“If the worrisome number of deaths leads to widespread erosion in consumer confidence both in the United States and abroad, there are companies that may be better insulated from this worst-case scenario.” Needham Research said.

With that in mind, we pulled up 3 of Needham’s top picks which could act as a safe haven should the crisis deepen, and honed in on them with the help of TipRanks’ Stock Screener. In addition to Needham’s endorsement, all three investment opportunities currently come with a Buy rating from the Street. Let’s get the lowdown.

Athersys (ATHX)

Athersys is a small cap clinical-stage biotech which develops novel and proprietary therapies designed to extend and enhance the quality of human life. Year-to-date, the stock is holding up relatively well, exhibiting a modest 2% downturn.

Driving the narrative for the company is its “off-the-shelf" stem cell therapy platform, Multistem. The therapy is being developed for several indications, but most pertinently right now, for pneumonia-induced acute respiratory distress (ARDS). Pneumonia/ARDS is one the leading causes of death for patients infected with COVID-19 and there are no approved drug treatments to address it.

Currently, Athersys’ partner Healios is running a study in Japan, which could potentially support approval. At the least, Needham’s Chad Messer believes an extended COVID outbreak should make enrolling the study easier and would put pressure on the Japanese FDA to approve it quicker.

Messer further added, “In a more extreme scenario the Japanese or even US governments could allow temporary pre-approval use of the drug. MultiStem is in 2 large Phase III stroke trials (one in Japan and one in US/EU) so it has a decent size safety database. Here in the US the drug has Regenerative Medicine Advanced Therapy (RMAT) status and it benefits from favorable treatment for regenerative medicine in Japan under the Pharmaceuticals and Medical Devices Act.”

Messer puts a $6 price target on this stock, to go along with his Buy rating. The implication? Upside potential of a blockbusting 396%. (To watch Messer’s track record, click here)

Over the last 3 months, no other reviews of Athersys were published by the analyst community. Therefore, Masser’s thesis provides Athersys with a Moderate Buy consensus rating to go along with the 4-star analyst’s price target. (See Athersys price targets and analyst ratings on TipRanks)

Trulieve Cannabis (TCNNF)

It’s no secret that the last year has been a hard one for the cannabis industry. The space hasn’t yet been able to achieve lift off on the promised cannabis 2.0 catalyst, and several big names in the sector have seen valuations tumble dramatically, as the effects of regulation and over supply issues have hampered their progress. Trulieve went against the over-all trend in 2019 and added an impressive 46% to the share price over the year. In 2020, with the advent of the coronavirus, the company hasn’t been spared; TCNNF stock is down by 24% year-to-date.

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