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Raymond James: these three stocks can yield at least 50%
In a recent note on the state of the stock markets, equity strategist Raymond James, Tavis McCourt, points to a range of policy factors that play a role in the current volatility in the market; the situation is perhaps more complicated than most of us were willing to admit. McCourt notes permutations of the SLR regime, political dynamics in the Senate Banking Committee and the regulatory atmosphere toward potential capital returns influence the Fed’s movements and market reactions. “We believe the Fed will do everything in its power to ensure orderly trading in the US Treasury, and do not want to see concerns about volatility and liquidity over the past week during the pandemic. We also believe that the Fed is not interested in increasing returns, as the Treasury wants to fund the next round of stimulus, “McCourt said. The strategist added:” While the SLR talk is a political and market issue for the Fed, we believe that any sales of the treasury and / or the stock market linked to the debate are of a transient nature. We focus more on improving the economic environment, vaccine distribution and reflection. ‘Keeping that in mind, our focus is on three stocks backed by Raymond James, with the firm’s analysts saying each could rise more than 50% from current levels. through the typers through the TipRanks database, we found out that the rest of the street is on board as well, as each has a moderate or strong buy consensus rating. Orasure Technologies (OSUR) We start in the medical industry, a field in which Orasure, through its subsidiaries, is a manufacturer of medical diagnostic tests and is known for developing rapid test kits for HIV, HEP-C and Ebola. In the past year, the company has created more than 150 jobs. in Bethlehem, Pennsylvania, as an effort to develop fast, home COVID test kits. The company’s product range has a wide range of uses, and is marketed to clinical laboratories, hospitals, medical practices and public health institutions. wee rld-wide. As can be imagined, Orasure recovered quickly from a 1H20 revenue decline, followed by strong gains. Top Q4 revenue was $ 62.9 million, a year-on-year gain of 27%. It was driven by revenue from products and services, which grew by 28% to $ 60.4 million. The EPS was positive, at 3 cents a share, which was a good turnaround due to negative results in the first half of the year – but was 25% lower than 4Q19. For the full year, Orasure reported $ 172 million in net revenue, an 11% yoy profit. Of this total, $ 50 million comes from sales of oral fluid collection devices (mouthwashes) for COVID-19 test devices. In addition, the company reported continued progress with its COVID-19 rapid antigen test and plans to submit prescription self-tests and professional tests for EUA (Emergency Use Authorization) by the end of the first quarter. Analyst Andrew Cooper, in his coverage of the stock for Raymond James, sees a lot to like, and marks the factors by the numbers: ‘What we liked: 1) Almost every income result. Orasure increased consensus sales by 10% … 2) Concrete antigen EUA timeline. There is no misunderstanding about the expected submission this month, with studies completed and there is just more administrative work left over … 3) More capacity expansion. Existing capacity timelines are underway, but management is now aiming to add another 50 million annual antigen capacity … ”For this, Cooper sets a price target of $ 16 on the stock, which implies an upward one year of 52%, and rates OSUR Performs better (ie buy). (Click here to see Cooper’s performance.) A good reputation in the field and a clear path forward will certainly attract positive sentiment – and three Wall Street analysts have placed Buy ratings on Orasure, which is the consensus of the analyst makes a strong buy. Shares are priced at $ 10.49, and the average price target of $ 18.67 is even more positive than Coopers, indicating an upward 78% lead for the next 12 months. (See OSUR stock analysis on TipRanks) Sol-Gel Technologies (SLGL) If we stay in the medical field, our focus will shift to a pharmaceutical company in the clinical stage. Sol-Gel is a biopharm with an interesting niche and develops topical drugs for the treatment of skin diseases. The company’s pipeline contains two proprietary benzoyl peroxide formulations, both ice creams: Epsolay, which is a treatment for papulopustular rosacea, and Twyneo, a treatment for acne. Both drugs have submitted their NDAs (New Drug Applications) to the FDA, and the final approval decision is expected in April and August this year, respectively. Sol-Gel also has three other drug candidates in the early stages of the pipeline process. Two are still in the research phase, while SGT-210 is in phase I trial, with the results in 1H21. SGT-210 is a possible treatment for palmoplantar keratoderma, a thickening of the skin on the palms and palms of the hands, sometimes seen as a symptom of several rare conditions. In addition, Sol-Gel works with Perrigo as the U.S. manufacturer of generic labels of the company’s branded products. In 2020, the two companies signed four agreements and they now have 12 collaborative projects. Among the supporters is Elliot Wilbur, analyst at Raymond James, who writes: ‘Given the huge market opportunity in key pipeline products, coupled with the recent adoption of NDA submissions, we maintain our strong buy rating on SLGL shares as we remain optimistic about the growth in the short term outlook and financial position. The Strong Buy rating has a price target of $ 23, indicating that SLGL has room to grow an impressive 156% in the coming year. (To see Wilbur’s record, click here) Small-cap biopharmas do not always get the attention of many analysts – they tend to fly under the radar. However, there are two discussions on this, and both are for sale, making the consensus rating a moderate buy. SLGL shares cost $ 9, with an average price target of $ 22 indicating a run-up to ~ 145% upside for 2021. (See SLGL stock analysis on TipRanks) PAE (PAE) Let’s switch over and look at the government’s support services. It’s no secret that governments are big users of contract service companies, and PAE is a major provider of contract services to U.S. government and defense agencies. PAE operates on every continent and in 60 countries and offers a range of services including analysis and training, intelligence, infrastructure operations, management and maintenance, logistics and material support and information optimization. Until recently, PAE was a private company, but in February last year it was merged with Gores Holdings III in a SPAC deal. The transaction brought PAE shares to the NASDAQ exchange on February 10, 2020. 2021 has begun with some changes in PAE’s contracts with the US government. At the end of January, the company lost a bid to renew a $ 125 million contract it had with Customs and Border Patrol since 2009 – but PAE received $ 3.3 earlier that month. billion contract with the US State Department. The contract with the state involves consular operations at diplomatic facilities in 120 countries. 5-star analyst Brian Gesuale, in his coverage of PAE for Raymond James, notes the change in contracts and does not believe it should harm PAE. “PAE’s qualified pipeline still stands at around $ 40 billion and pending allocations north of $ 6 billion, which, combined with the company’s 93% recycling rate of 93% in 2020, gives us confidence that the CBP contract can be adequately replaced, said Gesuale. Regarding the details of the government contract, Gesuale adds: ‘… this contract profit could contribute up to $ 110 to $ 125 million in high-margin annual revenue to the 2022 model. Overall, our estimates go higher, and we view PAE as one of the most compelling opportunities in government IT services. Although we expect the group to have a decline in fundamentals and a potentially significant revaluation of near-historically high valuations, PAE will have to do differently because it accelerates organic growth … ‘In line with these remarks, the analyst gives a better performance (ie buy) on the stock, and its $ 15 price target implies an upward return of 77%. (Click here to see the history of Gesuale.) PAE shares have a resounding ‘yes’ on Wall Street. TipRanks analyzes show that out of three analysts, all three are the best. The average price target of $ 12.67 shows a potential increase of about 50%. (See PAE stock analysis on TipRanks.) To find great ideas for stocks that are trading at attractive valuations, visit TipRanks’ best-selling stocks, a newly introduced tool that unites all TipRanks stocks. Disclaimer: The opinions expressed in this article are solely those of the proposed analysts. The content is for informational purposes only. 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