Raymond James: These 3 stocks have more than 100% increase on the horizon
We are now in the midst of earnings season and investors are paying close attention as companies release their financial results starting in the first quarter of 2021. It is routine in some ways, but in others it is not. t has never been a season of results quite like this. This is the first after the pandemic, but perhaps more importantly, the results are coming in an era of almost unprecedented government stimulus spending. There is no real comparison to how much cash inflows will impact bottom lines. Leaning on Raymond James, strategist Tavis McCourt has pinpointed some of the key points investors need to consider. First, McCourt notes that “the 2021 S&P 500 Consensus EPS continues to rise, almost daily, and has increased an additional 2% in the first two weeks of the earnings season.” McCourt identifies the correct historical framework for current conditions: âWe normally see positive earnings revisions in the first 1-2 years of an economic recoveryâ¦â The comparison crumbles, however, as estimate revisions fail. stop increasing. “… Analysts / management teams / this strategist continue to underestimate the positive impact of tax support (not ‘modelable’ as has never been done this way before) on corporate earnings,” added McCourt. With that in mind, we wanted to take a closer look at three stocks that have earned Raymond James’ seal of approval. Accompanying a bullish note, analysts at the company believe that each could climb more than 100% in the coming year. By running the tickers in the TipRanks database, we got all the details and learned what makes them so compelling. Landos Biopharma (LABP) We will start with a newcomer to the markets. Landos Biopharma held its IPO last February when it started trading on NASDAQ. The company is a clinical-stage biopharmaceutical company specializing in autoimmune diseases. Landos uses a proprietary computational platform to develop new drug candidates and has identified seven to date. The lead candidate is BT-11 (omilancor), a new treatment for patients with ulcerative colitis. BT-11 is a small molecule that targets the Lanthionine Synthetase C-Like 2 (LANCL2) pathway, an action designed to limit gastrointestinal impact. In January of this year, Landos reported positive results from the phase 2 validation trial of BT-11, with remission rates of 11.5% at week 12 for patients receiving oral administration once a week. day. Landos plans to expand clinical trials for omilancor, with a Phase 3 study in patients with ulcerative colitis and a Phase 2 study in patients with Crohn’s disease scheduled for later this year. The company’s other drug candidates are in early stages of the development pipeline, but it has had positive results to report from its candidate NX-13, another potential ulcerative colitis. In a phase 1 safety trial in healthy volunteers, the company reported no adverse results while meeting all primary and secondary endpoints. A Phase 1b study is slated for the second half of 2021. Among the fans is Raymond analyst James Steven Seedhouse, who sees the value factor in the company’s innovative approach. “[New] mechanisms especially in chronic immune disorders 1) carve out a potentially greater slice of the TAM pie in the primary indication (in this case, UC) and 2) open the door to follow-up indications once the new mechanism is validated in an immune disorder. The value proposition for BT-11 in theory is that it could be like Otezla (PDE4 inhibitor), which was acquired by Amgen for $ 11.2 billion net of tax benefits at 7 times sales of 1, $ 6 billion the previous year (2018), âSeedhouse said. Looking ahead, longer term, Seedhouse believes Landos has charted a profitable path. âPatients with mild UC represent over 50% of patients with active disease. The vast majority of drugs approved or under development for UC over the past 20 years target the very competitive (but smaller) ‘moderate to severe’ patient market, while the larger to moderate ‘population remains largely unexploited apart from 5-ASA and corticosteroids. Substantial efficacy and safety in mild to moderate 5-ASA refractory patients will help BT-11 reach our estimated unadjusted sales peak of around $ 1 billion, âthe analyst added. In line with those comments, Seedhouse attributes LABP to outperform (i.e. buy), and its price target of $ 33 suggests an impressive upside margin of 219% in the coming year. (To see Seedhouse’s track record, click here) Landos Biopharma has caught the attention of analysts in a short time as a public company and has already registered 4 reviews. These can be broken down into 3 purchases and 1 maintenance, for a strong consensual purchase note. The shares are priced at $ 10.18 and their average price target of $ 25.50 implies a 146% hike. (See LABP market analysis on TipRanks) Haemonetics Corporation (HAE) Haemonetics Corporation is a major player in the blood business. It produces a full line of blood collection and separation products, as well as software to operate the machines and service contracts to maintain them. The US market for blood products reached $ 10.5 billion last year, and its largest segment, plasma products and blood components, accounts for about 80% of that market. The Haemonetics product line is designed to meet the needs of this segment. HAE stocks showed steady growth from last August to February – a sustained period of 85% equity appreciation. Earlier this month, however, HAE fell 35%, to its lowest level in more than three years, on news that CSL Pharma had declared its intention not to renew its supply agreement with Haemonetics. The agreement, for the supply and use of the PCS2 plasma collection system, provided Haemonetics with revenue of $ 117 million – nearly 12% of the company’s total revenue. In addition to the loss of revenue, Haemonetics will have to absorb an additional $ 32 million in one-off losses related to the cancellation. The current supply agreement expires in June of next year. Analyst Lawrence Keusch, Haemonetics monitor for Raymond James, saw fit to maintain his outperformance (i.e. buy) rating on the stock, even after CSL’s announcement. âWe admit that Haemonetics has turned into a ‘show me’ story as it will be important for investors to understand the evolution of corporate strategy in light of the loss of the CSL contractâ¦ we believe that ‘Haemonetics can mitigate the estimated impact of $ 0.85 on profits from loss of contract (the company has about 14 months to resize the organization) and move towards further market share gains . We anticipate that it will take some time to gain visibility on a new growth path, ânoted Keusch. Keusch is ready to give HAE the time it needs to recover and return to a growth path, and his price target of $ 155 shows the extent of his confidence – a 128% rise for the stock over the course of the year. over the next 12 months. (To look at Keusch’s track record, click here) Overall, Haemonetics shows a 5-2 split in Wall Street analysts’ buy vs. keep recommendations, giving HAE stocks a moderate buy consensus rating . The stock has an average price target of $ 122, which suggests an increase of about 79% from the current price of $ 67.96. (See the HAE stock market analysis on TipRanks) Maxeon Solar Technologies (MAXN) Let’s move on and take a look at the solar technology industry. Maxeon manufactures and sells solar panels around the world, under the SunPower brand outside the United States and on its own behalf in the United States. The company split from SunPower last summer, when the parent company split from its manufacturing operations. Maxeon, the spin-off company, is a manufacturer of solar panels, with a product line of $ 1.2 billion in annual sales, more than 900 patents in the solar industry and more than 1,100 sales partners. and installation operating in over 100 countries. In the fourth quarter of 2021, the latest reported, Maxeon posted a strong sequential revenue gain, from $ 207 million to $ 246 million, a gain of 18%. Profit, which had been deeply negative in Q3 – at a loss of $ 2.73 per share – was positive in Q4, when EPS was 11 cents. Raymond James’ Pavel Molchanov, rated 5 stars by TipRanks, is impressed with the company’s overall position in the market and sees the benefits outweighing the negatives. âIt’s a commodity story, with a short-term margin structure that is weighed down by the legacy polysilicon supply. We are fans of the company’s above-average exposure to the European market, which will soon be reinforced by European climate law; as well as its participation in a joint venture in China, whose new photovoltaic constructions, already world leaders, could benefit from an additional boost thanks to the newly launched carbon exchange program, âwrote Molchanov. To that end, Molchanov attributes MAXN an outperformance (i.e. a buy) and sets a price target of $ 45 indicating a margin for growth of 127% in the coming year. (To view Molchanov’s track record, click here) MAXN’s actions have managed to go under the radar so far, and have garnered only 2 recent reviews; Buy and keep. The shares are priced at $ 19.86, with an average target of $ 34 which indicates a room for growth of around 71% by the end of the year. (See MAXN Stock Analysis on TipRanks) To find great ideas for stocks traded at attractive valuations, visit Top Stocks to Buy from TipRanks, a newly launched tool that brings together all the information about stocks from TipRanks. Disclaimer: The opinions expressed in this article are solely those of the featured analysts. The content is intended to be used for informational purposes only. It is very important to do your own analysis before making any investment.