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3 “Strong Buy” Shares of the Best Analysts on Wall Street
Nearly two months into 2021, the market looks uncertain about where it is headed. In fact, many investors fear that the market is due to a serious correction, especially for the wide range of rich stocks. This is an environment that the pickier stocks should choose. Or perhaps it is wise to use the best in such times to see where the next opportunity lies. And at best we mean the cream of the crop – the best analysts on Wall Street. We outlined the details of three stocks after which the top 3 analysts of the street, according to the TipRanks database, were recently earmarked for the next 12 months. All three come from different sectors, but have one characteristic in common; they are strongly bought by the consensus of the analyst. Avalara, Inc. (AVLR) We start with Avalara, a software company that develops cloud-based systems for international tax preparers, making it a much-needed product for any business with international clients. Avalara’s products automate business tax compliance and integrate business, tax and accounting records programs – all services needed to keep small and medium-sized businesses in compliance with local and international tax regulations. The COVID pandemic – and the social barriers and travel restrictions that have been put in place to combat it – have made it difficult for small businesses to reach out to their tax staff – and have suddenly made Avalara’s products in tax automation more valuable. The company’s share has risen since the market downturn last winter, with a rise of 205% since the lowest point, which was hit last March. These share gains were accompanied by steady revenue growth. The last quarter, 4Q20, showed $ 144.76 million at the top, with 13% consecutive and 34.5% year-on-year. Even better, for investors looking for power, Avalara announced in December that it would acquire German tax software firm INPOSIA. The financial terms of the agreement have not been announced, but INPOSIA offers additional international tax knowledge, access to Europe’s largest economy and 50 staff – all of which are now assets for Avalara. Piper Sandler analyst Brent Bracelin is in first place out of more than 7,200 analysts and he sees the acquisition of INPOSIA as a strong step for Avalara to adapt to the European compliance scene. ‘New laws on e-invoicing could appear as a regulatory catalyst. Several European countries are planning to modernize the 20+ year old VAT system with the aim of moving to digital invoicing and real-time reporting, ‘the five-star analyst said. “The acquisition of INPOSIA serves as an important digital bridge in tax authorities. The acquisition of a German software industry that is expected to close during the first half of 2021 could be the potential to make a new vehicle for Avalara to capitalize on all these new e-invoicing laws … ”Bracelin is from believes that international sales are Avalara’s next leap for incremental growth. Consistent with this outlook, the analyst considers the stock to be overweight (ie buy), and its $ 210 price target implies a 26% uptrend for the coming year. (To see Bracelin’s performance history, click here.) Of the eleven analysts who have reviewed Avalara in recent weeks, ten agree with Bracelin that it’s a stock to buy, giving the breakdown of 10 Buys to 1 Hold the company a strong buying analyst. consensus rating. Shares in Avalara cost $ 166.60, and the average price target of $ 209.45 indicates that it has a growth potential of ~ 26%. (See AVLR stock analysis on TipRanks) Axcelis Technologies (ACLS) Axcelis is a small business firm in the semiconductor industry support sector. Axcelis manufactures manufacturing equipment essential for the manufacture of semiconductor chips; specifically, Axcelis is a specialist in ion implantation technology that is essential for the process of chips. In terms of revenue, Axcelis reported $ 122.2 million in the fourth quarter, a year-on-year gain of 13.5% and an estimate of $ 3.8 million. The EPS in the fourth quarter rose from 0.29 cents a year ago to 43 cents, which also beat the street’s call by 13 cents. The beat was the latest in a long line of better performances than the best; Axcelis beat the forecasts in each of the last 9 quarters. In his review of Axcelis, Quinn Bolton of Needham, who rates TipRanks as the # 2 analyst on Wall Street, believed the company’s product line and sales prospects support management’s optimism. ‘[We] is more confident about the strength and visibility of WFE (wafer fab equipment) in 2021, and now expects the company to generate $ 500 million in revenue for the full year. We are also raising our 2022 estimates and now believe ACLS will reach its $ 550 million revenue target in 2022, driven by two consecutive years of DRAM WFE growth, sustained strength of mature nodes and equity gains, ‘says Bolton . These comments support Bolton’s buy rating, and its $ 44 price target implies a ~ 13% increase for the next 12 months. (To view Bolton’s record, click here.) Bolton’s colleagues on Wall Street broadly agree with its position on ACLS – as evidenced by the stock’s strong buy consensus rating with unanimous 5 reviews. The average price target, $ 46.80, is a bit more bearish than that of Bolton, indicating ~ 20% upside from the current share price of $ 39.02. (See ACLS stock analysis on TipRanks) TFF Pharmaceuticals (TFFP) From the semiconductor industry, we are moving to the biotechnology sector, to TFF Pharmaceuticals. The TFF stands for Thin Film Freezing, the biopharma’s patented technology platform on which the development of its innovative medicine products is based. The platform makes it possible to formulate formulations of drugs with dry powder that are currently administered orally, which transforms them into inhalable therapies. Among a selection of next-generation versions of available medicines, the two most advanced candidates are ready to take on medium-term trials. HC Wainwright analyst Ram Selvaraju is in third place among Wall Street analysts and believes it could be a major catalyst for the stock. One candidate is TFF VORI, an inhaled dry powder version of Voriconazole and earmarked for the treatment of Invasive Pulmonary Aspergillosis (IPA), a dangerous fungal lung disease that can have a mortality rate of 90% in some patient populations. Selvaraju expects TFF phase 2 development of TFF Vori to begin in 1H21, and expects top data to be in the mid to late 2022. This could lead to a Phase 3 study next year as well or an NDA submission if the core program is determined not to be required by the FDA. The second candidate to progress is TFF Tac-Lac, an inhaled dry powder used by Tacrolimus, designed to prevent rejection of an organ transplant. A Phase 2 program could start sometime this year with the possibility of a data readout in 2022. If the Phase 2 data is ‘sufficiently influential’, Selvaraju says, a Phase 3 program may not be necessary. Selvaraju believes that in 2024 the company can launch both TFF Vori and TFF TacLac and achieve ‘profitability in that year’. The 5-star analyst summed up his bullish thesis, saying: “We are convinced that there is still a huge upward potential in terms of its most advanced candidates in the clinical stage, and that the company’s early stage and usability of the platform remains underestimated. ” As a result, Selvaraju TFFP shares are evaluating a buy, along with a price target of $ 31. Investors can get a 95% profit in their pocket once the analyst’s dissertation has played out. (To see Selvaraju’s record, click here) TFF has few analysts currently monitoring its progress, but all support their success. Based on 3 buys, the stock has a strong buy consensus rating. The average price target stands at $ 28.33 and indicates gains of ~ 78% in the coming year. (See TFFP stock analysis on TipRanks.) To find great ideas for stocks that trade at attractive valuations, visit TipRanks’ best stocks to buy, a newly launched tool that summarizes all the TipRanks stocks. Disclaimer: The opinions expressed in this article are solely those of the proposed analysts. The content is for informational purposes only. It is very important to do your own analysis before investing.