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JP Morgan: 2 ‘strong buy’ shares to refurbish
The ‘corona year’ brought us confusion: a brief, sharp recession last winter; a partial recovery last summer; and a setback during the ‘second wave’ of COVID-19 in the fall and winter. As the country now begins the second spring of the pandemic, JPMorgan stock strategist Dubravko Lakos-Bujas has made a series of remarks about the options investors are facing. ‘We still believe that cyclical equities continue to rise on their head as the business cycle strengthens, but also see that market participation is broadening, given the significant on-risk that has occurred in high growth and expensive Momentum equities … Growth Equities have also received significantly less risk, linked to Momentum factor, and now looks much less vulnerable (for example, even to rising bond yields), ”noted Lakos-Bujas. In short, the strategist now sees opportunity for investors as economic growth seems to be gearing up again. To make the prospects of Lakos-Bujas into concrete recommendations, JPMorgan analysts are knocking on the table on two stocks that seem particularly compelling. According to these analysts, the possibility is that each name will rise in the next 12 months. After running JPM’s stock exchange through TipRanks’ database, we found out that the rest of the street is also squarely in the bull camp, as each boasts a consensus from an analyst of a ‘strong buy’. Wheaton Precious Metals (WPM) The mining industry sounds like a good investment – and it’s regular. After all, what could have more cash than owning a gold mine? The miners also have some disadvantages: high overheads, unpredictable markets and unproductive mines, to name a few. Precious metal flow companies, such as Wheaton, exist to smooth out these bumps (which are sometimes significant) and bring some predictability to the metal markets. Streamer companies enter into agreements with the mining companies to buy up the production of all or all of the products at a predetermined price. The streamer can then sell the metals at the prevailing market price. Wheaton is one of the largest streaming companies in the world, with revenue of $ 1.09 billion by 2020, a company record and a market capitalization of $ 18 billion. In its financial report on 4Q20, the company showed several strong benchmarks. Operating cash flow was $ 208 million for the quarter, and $ 750 million for the full year. The company, as noted, recorded annual revenue and was able to reduce net debt to just $ 2 million. On top of that, Wheaton increased its quarterly dividend to 13 cents per ordinary share. Solid metal production, ahead of the previously published guidelines for 2020, underlies these gains. JPMorgan analyst Tyler Langton likes what he sees, noting: ‘At current metal prices, the company should generate about $ 1.0 billion in cash flow this year, which we believe focuses on transactions and / or its dividend will be. While the precious metal stocks as a whole have come under pressure recently due to rising interest rates and falling gold prices, we are still seeing a head-to-head push in WPM’s share price, even at $ 1,600 per ounce. gold price according to the model … ”Langton gives an overweight (ie buy) rating on WMP shares, and its price target of $ 58 indicates that it has room for an upward rate of 53% over the next 12 months. (To see Langton’s record, click here.) Strong Buy’s consensus rating on WPM shows that Wall Street believes this stock is as good as gold. The 12 recent reviews here contain 9 to buy and 3 to like. Shares cost $ 40.12, and the average target of $ 52.45 implies a 30% rise. (See WPM stock analysis on TipRanks.) Smartsheet, Inc. (SMAR) Smartsheet, a SaaS company, offers cloud-based workspace management and collaboration products. These software products, which enable faster and more efficient remote access teamwork, are obviously compatible with the current office work environment. Smartsheet reported its 4Q21 – and full financial year results – earlier this week, showing some strong gains on key metrics. In the quarter, revenue was 40% higher year-over-year to $ 109.9 million. The top line was driven by a 49% increase in invoices, to $ 151.2 million, and a 42% increase in entries to $ 101.1 million. The company had strong positive cash flow during the quarter, net free cash flow of $ 9.9 million. This was a strong reversal compared to the previous quarter, when cash flow was negative. For the full year, the company reported a top line of $ 385.5 million, an increase of 42% per year. Once again, entries in particular were pointed out; this benchmark rose 45% to $ 352.8 million. A look at Smartsheet’s recurring revenue will help boost the company’s confidence. Smartsheet holds the annual contract value (ACV) as a measure of gross income; customers with a larger ACV of $ 5,000 or more grew by 31% yoy; with ACV of $ 50,000 or more grew by 58% yoy, and with ACV of $ 100,000 or more by 68%. This suggests that Smartsheet can rely on increasingly profitable recurring revenue going forward. JPM’s 5-star analyst Mark Murphy was impressed with Smartsheet’s recent performance, enough to upgrade its attitude towards Neutral’s share of overweight (ie buying). ‘We expressed a thesis that this category of collaborative work management was not an immediate type of pandemic response, but we felt that it could start attracting attention later in the cycle, as companies have more time to think about ways think. to perform work outside Zoom and as soon as they become more visible in the distribution of their workers to COVID-19 … We still believe that Smartsheet has enough growth opportunities in different vectors and therefore has the potential to become part of the company’s software inside organizations, ”Murphy said. Murphy sets a price target of $ 83 on the stock to support its Buy rating, which implies a 32% increase for the next 12 months. (Click here to see Murphy’s record. A total of 8 analysts considered the Smartsheet shares and their recommendations include 7 Buys at only 1 Hold. This gives the stock a consensus rating from the strong buy analyst. SMAR is currently selling for $ 62.86, and the average price target of $ 82 indicates a run-up to 30% upside this year. (See SMAR stock analysis on TipRanks.) To find great ideas for stocks trading at attractive valuations, visit TipRanks’ best shares to buy, a newly introduced tool that unites all of TipRanks’ equity 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 you do your own analysis before investing.