Biotech's "great run" will continue despite a bumpy April, one industry analyst said Friday.
The sector's struggles last month can be seen in the iShares Nasdaq Biotechnology ETF (NASDAQ: IBB), ticker IBB, which fell roughly 2 percent in that span. The drop "wasn't surprising" considering the category's strong performance, and "fundamentals still look really good," said Corey Davis, specialty pharmaceuticals analyst at Canaccord Genuity.
The ETF's 3 percent pop on Friday shows that the sector may keep climbing, he contended.
"I think it's going to continue from here," Davis said in a CNBC " Power Lunch " interview.
In the last two years, the Nasdaq Biotechnology ETF has jumped about 100 percent compared to 30 percent for the S&P 500 (INDEX: .SPX). Many market watchers have seen a bubble in the wake of that climb.
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Davis, however, believes the sector has upside. His favorite stock in the space is Valeant (Toronto Stock Exchange: VRX-CA), which he called "underestimated" and "misunderstood."
The pharmaceutical company's shares have soared more than 50 percent this year and were up 2.6 percent in late trading Friday.
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