Clarity Pharmaceuticals Ltd (ASX: CU6) shares were on form on Thursday.

The ASX 200 biotech stock jumped a sizeable 10% to finish the day at $4.31.

This appears to have been driven by a broker note out of Bell Potter, which identified the pharmaceuticals company as one to buy now.

What is the broker saying about this ASX 200 biotech stock?

Bell Potter highlights that Clarity Pharmaceuticals shares have been under a lot of pressure over the past 12 months.

This is despite the ASX 200 biotech stock making significant progress. It explains:

The global biotech sector has faced sustained headwinds in recent months, driven by FDA regulatory delays, threats of US tariffs and a 'risk off' appetite amongst investors, particularly amongst pre revenue drug developers.

Amid this broader sector weakness, CU6 has traded lower in CY25 despite continuing to deliver outstanding results across its clinical program. Next catalyst, Co-PSMA. Study now fully enrolled, all patients dosed and scanned, hence data is expected in the coming months. For men exhibiting low but rising PSA levels, the data may be critical to overall survival, particularly where time to surgical intervention/radiotherapy is reduced by months.

Is it too late to invest?

While the time to invest was a month ago, Bell Potter doesn't believe it is too late to jump on board.

According to the note, the broker has reaffirmed its speculative buy rating on the ASX 200 biotech stock with an improved price target of $5.00 (from $4.90).

Based on its current share price of $4.31, this implies potential upside of 16% for investors over the next 12 months.

To put that into context, a $2,500 investment would turn into $2,900 by this time next year if the broker is on the money with its recommendation.

Commenting on its buy recommendation, Bell Potter said:

The recent pull back in the CU6 share price represents an outstanding Buying opportunity. We expect the data from Co-PSMA will attract global attention from Urologist and large pharma partners alike. There are no changes to earnings. Valuation raised to $5.00.

All in all, this could make Clarity Pharmaceuticals worth considering right now if you have a high risk tolerance.

Alternatively, the broker recently put a buy rating and $305.00 price target on CSL Ltd (ASX: CSL) shares. It could be a great alternative if you're looking for blue chip picks in the space.