$XBI, the S&P Biotech ETF, has shown a notable resurgence recently, approaching its 52-week high of $103.52. Analysts express optimism for the biotech sector, particularly as mergers and acquisitions (M&A) activity is expected to increase towards the year-end, regardless of broader macroeconomic factors. A suggested target price for $XBI is $120 within the next six months, with a recommended stop-loss at $95. The overall sentiment among market observers indicates a positive outlook for biotech stocks, with expectations of strong performance as the fourth quarter approaches. The sector is also anticipated to benefit from significant free cash flow, projected to exceed $1 trillion for major pharmaceutical companies through 2028.