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JP Morgan Predicts 30% Plus Rally for These 2 Shares
Basic physics, and the testimony of our own eyes, tells us that what goes up must come down. But the NASDAQ is more than 13,000 and the S&P 500 more than 3,800, and some market viewers are beginning to wonder where the ceiling is. Banking giant JPMorgan is examining the question of how much space the bulls have left to manage in the current market conditions. Looking back at the collapse of Lehman Brothers, and the financial crisis of 2008, the bank’s global market strategist Nikolaos Panigirtzoglou noted that the average equity stake under equities, bonds and cash was 42.3%. He points out that this ‘neutral’ level was breached in November, and that the share allotment is now closer at 43.8%. This increase compared to the average will mean that there is not much room for stocks to hold on – except that the post-Lehman high share allotment, which was reached in January 2018, was 47.6%. To put it bluntly, we are not there yet. Panigirtzoglou sees the continuing expansion of the M2 monetary base fueling the stock boom and isolating it against changes in the bond markets. Against this background, JPMorgan analysts in particular are hitting two stocks on the table, noting that each could rise more than 30% more. the year ahead. We led the two through the TipRanks database to see what other Wall Street analysts have to say about it. ContextLogic (WILS) We start with ContextLogic, the parent company of Wish.com. This e-commerce market has become known for its social media ads, both for their ubiquitous presence and their entertainment value. Wish has the ability to attract traffic and customers – it has become the third largest online retail site in America, with more than 100 million visitors per month and more than 150 million items offered for sale. The company’s revenue is more than $ 2 billion annually. The growth is driven by several factors: the high monthly traffic, the large – and largely untapped – e-commerce customers of low-income households looking for cheap goods, and the global network of more. more than 500 million merchants. WISH suffered a major upheaval in December, when it held its IPO – and the price fell by almost 17% in the first trading day. The offer was $ 24 per share, but the stock traded at $ 20.05 on the first day. Nevertheless, the company raised another $ 1.1 billion on its first day on the market, and currently boasts a market capitalization of $ 14.5 billion. 5-star analyst Doug Anmuth, who covers the shares for JPM, writes: ‘We believe Wish has significant growth potential with current penetration of ~ 3% of the global target market estimated at 1B + households, and less than 1% share of the overall $ 2.1T global mobile trading market. Wish uses data science to drive all aspects of its business from user sourcing to pricing to logistics, which helps the business stay awake and reach a larger global scale over time. We expect Wish to deliver more steady growth of 20% + over the next few years … ‘To that end, Anmuth WENS assesses an overweight (ie buy) and she The price target of $ 30 implies an upward potential of 43% for the next 12 months (to see Anmuth’s record, click here) Wall Street is pretty positive on this ‘Moderate Buy’ share: WISH received 8 ‘Buy’ and 4 ‘Hold’. ratings in the last three months. Start If the numbers are across the street, the average price target of 12 months is $ 26, representing an upward potential of about 24%. (See WISH stock analysis on TipRanks) Passage Bio (PASG). The second JPM choice we are looking at is Passage Bio, a genetic medicine company. Passage focuses on the development of treatments for rare, life-threatening, monogenic central nervous system disorders, using an adeno-associated virus delivery system. Monogenic abnormalities are caused by a mutation or defect in a single gene; the adeno-associated virus system is adapted to deliver a corrected gene directly into the affected cells. The company currently has three main drug candidates under development: PBGM01, a treatment for GM1 gangliosidosis; PBFT02, to treat frontotemporal dementia; and PBKR03 as treatment for the Krabbe disease. All three are in the IND-enabled phase of the development cycle, and the company announced earlier this month that PBGM01 has received FDA approval to proceed to Phase 1/2 trial. PBFT02 and PBKR03 are scheduled to start Phase 1/2 later in 1H20. The positive outlook for Passage’s research program underlies the JPM stance on the stock. 5-star analyst Anupam Rama improved his firm’s rating from Neutral to overweight and set a price target of $ 35, indicating a potential upward return of ~ 34% on the one-year horizon. (To view Rama’s record, click here.) Supporting his upgrade, Rama marks the FDA approval on PBGM01 and writes: ‘[We] expects the focus to return to the upcoming GM1 data by the middle of the year, which will be the most important clinical catalyst for the company. Based on known preclinical data, we will be looking for the initial PBGM01 GM1 data to not only extract the program itself but also the broader platform of the company. The analyst’s consensus on PASG is not unanimous, but almost unanimous. Strong Buy’s consensus rating is supported by 3 Buys against a single Hold. Shares are selling for $ 26.25, and the average price target of $ 32.83 indicates an increase of ~ 25%. (See PASG stock analysis on TipRanks) Visit TipRanks ‘best-selling stocks, a newly launched tool that combines all of TipRanks’ equity insights. those of the popular analysts. The content is for informational purposes only. It is very important to do your own analysis before investing.