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Wells Fargo: 2 compelling stocks with over 70% upside potential
Analysts at Wells Fargo examined the market, or more specifically examined the winners and losers of current market conditions. In a recently published note, senior equities analyst Chris Harvey writes: ‘Risk mitigation and smaller investment as a better performance have turned this stock market into a stock market’s paradise.’ It is therefore clear that Harvey sees that small-cap stocks are currently doing well, with many options for investors to choose from. Although small capitalizations generally involve a riskier investment, the possibility of larger returns is a clear advantage that keeps them above bigger names. This is where the risk / reward paradigm comes into play. Following Harvey’s remark, the company made a number of recommendations and found the small-cap stocks looking for growth and stocks that promise 70% or more returns in the coming year. We ran two of them through the TipRanks database to see what other Wall Street analysts had in mind. Ping Identity Holding (PING) Ping Identity Holding Corp., which specializes in identity management, is the first Wells Fargo choice we look at. The company offers a range of products that enable customers to control login and access to networks and databases. Although it has been in business for almost twenty years, Ping Identity has only been a public company for the past year and a half. In the company’s latest quarterly report, for 4Q20, Ping reported mixed results and shares declined by 20% in the immediate aftermath. EPS was a net loss of 4 cents per share. Revenue at the top line, at $ 63.2 million, fell 7% year-on-year, but rose 5.5% in a row, becoming the second highest quarterly top line the company has seen since its announcement. For the full year, total revenue was $ 243.6 million, resulting in a 15% increase in annual recurring revenue (ARR), which was $ 259.1 million. The company reported a 34% increase in customers with more than $ 1 million in ARR, a solid profit in a key measure. Analyst Philip Winslow, who covers the stock for Wells Fargo, was particularly impressed with the ARR profit. “Ping reported solid Q4 results with ARR above expectations. The ARR growth of 15% year-on-year exceeded the $ 256.1 million consensus estimates, driven by continued acceptance of SaaS solutions that accelerate more than expected and represent + 15% of the total ARR, ”the 5-star analyst written. Winslow added: ‘The company is experiencing persistent signs of a pent-up demand as customers phase out purchases as projects previously postponed due to COVID-related budget pressures are envisaged, and businesses modernizing old-fashioned systems whose shortcomings have been exposed to the past year. For this purpose, Winslow PING assesses an overweight (ie buy) and has a price target of $ 40 which indicates the potential of 76% upside down in the next 12 months. (To see Winslow’s record, click here) Winslow is not an outlier in his positive attitude, but there is some division in Wall Street over Ping. The analyst’s consensus view is a moderate buy, based on a dozen reviews outlined on 7 Buys and 5 Holdings. The shares cost $ 22.59 and their average price target of $ 33.71 indicates an upward one year of 49%. (See PING stock analysis on TipRanks) Sangamo Therapeutics (SGMO) Let’s shift the gear and look at the life sciences sector. Sangamo is a biotechnology company focusing on the creation of genomic medicine therapies for the treatment of genetic diseases. The company’s pipeline contains 17 different programs in different stages of development, targeting a range of conditions, including IBD, beta-thalassemia, sickle cell disease and haemophilia A. . It is a gene therapy product being developed as a treatment for haemophilia A, and follow-up data from the Phase 1/2 Alta study showed that the drug is well tolerated and safe in the small group of patients tested. Giroctocogenic fitelparvovec is now starting the patient dosing phase of the Phase 3 AFFINE study. In February, Sangamo reported that it had entered into a global collaboration with Biogen on the development and commercialization of new gene regulation therapies. The therapies under consideration are aimed at Alzheimer’s, Parkinson’s and other neurological diseases. Among the bulls is Wells Fargo analyst Yanan Zhu, who writes about the overall picture: ‘Overall, we still see significant upside potential in the pipeline programs and platforms of the company’s genomic medicine, especially the regulatory T (Treg ) therapy platform, which can address a wide range of autoimmune diseases, and the ZFP-TF no-regulation platform, which can address certain neurological indications that are difficult to target … ”In light of these remarks, Zhu reiterates the firm’s overweight (ie buy) stock on the stock, and sets the price target at $ 29, indicating a solid upward rise of 158% (to view Zhu’s record here, click here) About the overall, SGMO has drawn optimism, mixed with caution when it comes to consensus opinions among sellers. Of the five analysts surveyed over the past three months, 2 are strong on the stock, while 3 remain on the sidelines. Still, the bulls have the lead, as the average price target stands at $ 19.40, indicating an upside of 72%. (See SGMO stock analysis on TipRanks.) To find great ideas for stocks that trade at attractive valuations, visit TipRanks ‘best stocks to buy, a newly introduced tool that unites all of TipRanks’ insights. 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.