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Raymond James predicts more than 60% rally for these two stocks
With incredible power, the S&P 500 has risen 50% over the past twelve months, with the index now only shy of the 52-week high. This impressive progress came when investors picked up on COVID-19’s devastating impact on the economy. Furthermore, Raymond James’ strategist, Tavis McCourt, believes we are looking at a long period of higher interest rates, higher taxes and abundant economic growth. “[It] seems very likely that the bag is going to be in a very strong economy, low unemployment, with higher long-term rates, and probably higher tax rates in the next 6-12 months. The bias for the EPS this year is likely to be higher as reopening takes place, as any EPS deficit is likely to be driven by issues or inflation, and not a lack of demand, “McCourt noted. Continued improvement in the economic indicators draws a rosy picture, and McCourt believes that some potential negatives (for example, the policy preference of the Biden administration over higher tax rates) have already been priced in. As the tide rises, we remember one of JFK’s famous lines: ‘A rising tidal lifts all boats. ‘ We’re looking at a piece of the rising tide through the stocks of some of McCourt’s Raymond James colleagues, who have been outperforming stocks with a 60% return for the coming year. TipRanks’ database, it’s clear that the rest of the street agree, and each deserves a Strong Buy consensus rating.Pioneer Natural Resources (PXD) We start in Texas, in the oil slick of the Perm basin, where Pioneer Natural Resources is an association and withdrawal company for hydrocarbons Pioneer has more than 1.27 billion barrels of oil equivalent in proven reserves on its holdings, containing 357 million barrels added by exploration in 2020. Operations in its possession yielded a Q4 earnings of $ 1.07. per share, beating the consensus estimates of $ 0.69 per share For the full year 2020, Pioneer reported a net loss of $ 1.21 per share, which was strongly affected by interruptions due to the COVID pandemic crisis. thermore, in 2020, Operating cash flow reached $ 2.1 billion, with a free cash flow of $ 689 million. The company used the free cash flow to fund a $ 521 million capital return program. A large part of the capital return is made by the company’s dividend, which in the last statement was increased one cent to 56 cents per ordinary share, which is paid quarterly. The company continued to build on its strong position by acquiring rival DoublePoint Energy, which is effective this month. The acquisition cost Pioneer the equivalent of $ 6.4 billion – divided into 21.2 million shares of ordinary PXD shares, $ 1 billion in cash and the remainder, $ 900 million, in accepting debt and liabilities. Analyst John Freeman, who discusses PXD for Raymond James, writes of the acquisition: “We expect significant efficiency improvements due to longer figures on the acquired surface, in addition to the typical G&A and interest rate energies. The net acre increase of 97,000 increases PXD’s leasehold percentage to Perm to> 1 million acres. The analyst added: ‘With the acquisition of DoublePoint Energy, Pioneer is establishing itself as the leading Permian Basin pure-play E&P with the highest surface position and balance sheet. The company’s ability to generate meaningful FCF should be more than sufficient to fulfill its intentions to deliver meaningful returns to shareholders … ”In line with his comments, analyst PXD rates a strong buy, with a target price of $ 245 to indicate a year upside of 67%. (To see Freeman’s record, click here) Overall, the word of the street is an overwhelming one for this oil stock, as TipRanks analytics displays PXD as a strong buy. Of the 24 analysts surveyed over the past three months, 19 are positive and 5 remain on the sidelines. With a return potential of ~ 29%, the consensus target price of the stock stands at $ 190.57. (See PXD stock analysis on TipRanks) NexImmune (NEXI) With the shift of gears, we are moving from the energy industry to the biotechnology field, where NexImmune is an early stage of biotechnology venture in oncology, developing T cell immunotherapies . In short, the company is exploring ways to stimulate the patient’s immune system to fight cancer. The company has a development pipeline with two major science candidates, NEXI-001 and NEXI-002, which are in phase 1/2 clinical trials as treatment for acute myeloid leukemia (AML), which has relapsed into allogeneic stem cell transplantation or multiple myeloma> 3 previous treatment lines. The company has four more programs in different stages of early preclinical development. In the fourth quarter of last year, NexImmune announced the first patient in the Phase 1/2 study for NEXI-002. Also in the first quarter of 20, the first results of the first five patients treated with NEXI-001 showed ‘early signs’ that the candidate is safe and giving a robust immune response. NexImmune provides additional data on these trials in 2Q21, and a more complete set of results by the end of this year. In a move to raise capital, NexImmune held an initial public offering (IPO) on the US stock exchange NASDAQ in February 2021. The company raised 7.441 million shares at a price of $ 17 per share. The sales, before expenses, earned $ 126.5 million for the company. NexImmune’s move to the NASDAQ has forced Raymond James analyst Steven Seedhouse to start covering the stock. The analyst rates NEXI a better performance (ie buy), coupled with a price target of $ 30, which means an increase of 64% in the coming year. (To view Seedhouse’s record, click here) “Individually, we consider NexImmune’s programs to be high risk / high reward (ie low PoS but high unadjusted revenue potential), plus overall we consider the platform likely a successful therapist led by an experienced management team, ”says Seedhouse. The analyst added: “NexImmune’s AIM ACT technology is related to a cell therapy called tumor infiltrating lymphocytes (TILs) and [rival] Iovance showed promising data in phase 2 study of TIL lifileucel in metastatic melanoma. Unlike the more targeted NEXI-001, lifileucel consists of a very diverse mixture of T cell clonotypes. We think the market value of Iovance north of $ 4B is a target for NexImmune. ‘This company has only had three time to get three analysts’ ratings since it started trading in the US markets, but all three are for sale, which makes the analyst agree on The share price is currently $ 18.28 and has an average target of $ 33.33, indicating an increase of ~ 82% this year. (See NEXI stock analysis on TipRanks) To find great ideas for stocks trading at attractive valuations, visit TipRanks ‘best-selling stocks, a newly launched tool that combines all the insights of TipRanks’ equity. Disclaimer: The opinions expressed in this article are solely those of the analysts presented. The content is for informational purposes only. It is very important to do your own analysis before investing.