The outlook for biotechnology is finally turning positive, according to Evercore ISI, which reports on the sector with an “increasingly constructive view” as it expects more to come. more opportunities for development ahead. “After three years of underperformance, winter is finally thawing and spring may be on the horizon,” analyst Cory Kasimov wrote in a note Monday. Kasimov noted that biotech stocks typically peak in early 2021 when interest rates are at their trough. Since then, the sector has fallen 49%. While biotech stocks are sensitive to interest rates, the analyst believes most of the group’s other catalysts – such as mergers and access to capital – remain “relatively consistent.” According to Kasimov, the XBI YTD Mountain SPDR S&P Biotech ETF is active year-to-date. This sector represents an opportunity for investors looking for a “stock picker’s market”. With this in mind, he named seven stocks to his core initial list, which he dubbed “The Magnificent Seven.” “We prioritize names and initially launch products with clear clinical descriptions and/or commercial advantages,” Kasimov said. We have our hands in all the hot areas…oncology, neurology, rare, cardiometabolic, etc.” The analyst rates five companies: Regeneron, BioMarin, Neurocrine, BridgeBio and Arcellx. He forecast strong earnings and cash flow for Regernon, while also highlighting its broad portfolio of operations. That stock is up nearly 11% since the beginning of the year. Rare disease company Neurocrine also has meaningful catalysts ahead, according to Kasimov. To be sure, he notes that Roctavian’s hemophilia A gene therapy is underperforming. However, Ingrezza’s development of its Huntington’s disease treatment and the “blockbuster potential” of its investigational treatment crinecerfont have created a positive foundation for Neurocrine, according to Kasimov. Neurocrine stock is only up 3% year-to-date. Kasimov also initiated inline ratings for BioNTech and Moderna. —CNBC’s Michael Bloom contributed to this report.