According to Raymond James, 2 stocks are ready to increase by 60% or more
AAnyone feeling giddy about the recent market gyrations? Volatility is back on the big menu. The past week saw strong movement in both directions, with the bears ultimately in control, culminating in Friday’s rout. After advancing for most of the year, major indices have been pulling back recently as the market worries about fears of the Omicron variant and the Fed’s hawkish turn. Friday’s seemingly disappointing jobs report further fueled the flames of doubt.
Nonetheless, even in the midst of uncertainty, there are still opportunities for investors keen to seek them out.
Raymond James analysts have picked 2 stocks they believe are poised to leap higher, in the order of 60% or more. We used the TipRanks platform to find the latest data on those choices; it turns out that the street also sees a lot of benefits.
Cushman and Wakefield (CWK)
So let’s start with a real estate company. Cushman & Wakefield is a global player in commercial real estate services and one of the largest such companies in the world, with total revenues of $ 7.8 billion last year. The company’s turnover is supported by a large part of the annual recurring costs, but it is also exposed to the cyclicality of the market. As a result, the stock is more likely to gain during bullish times than more stable investments such as real estate investment trusts.
Year-to-date, C&W stocks have gained 27%, beating the S&P’s 21% gain. The share gains came as sales grew steadily throughout the year. First quarter revenue was reported at $ 1.9 billion; In the third quarter, revenue was $ 2.3 billion, also a 20% year-over-year gain. Of total quarterly revenue, $ 1.7 billion was from fees, up 28% from the previous year. EPS for the third quarter was 34 cents, down from 50 cents in the second quarter, but up dramatically from 4 cents reported in 3Q20.
Cushman & Wakefield is still looking for expansion in creative directions, and in October of this year the company announced a partnership with WeWork, the flexible workspace company. The partnership includes a $ 150 million investment from C&W, and Cushman will be able to leverage rental and project management to create new revenue streams.
Also in October, Cushman entered into a joint venture with commercial real estate finance company Greystone. The company will see Cushman invest $ 500 million in Greystone’s Agency, FHA and Servicing businesses, for a 40% stake.
CWK Coverage for Raymond James, 5 Star Analyst Patrick O’Shaughnessy writes, “We see Cushman’s current valuation as very attractive on both an absolute and relative basis, and we are looking for his pending investment in multi-family origination company Greystone and his partnership with WeWork as potential catalysts. “
O’Shaughnessy goes on to add that “… despite an unclear medium-term outlook for demand for office buildings, the rebound in the global economy is pushing brokerage activity up and indicating a further rise in 2022 and beyond “.
In line with those comments, the analyst upgraded his view of the stock from Outperform to Strong Buy, and set a price target of $ 31 which implies a 64% hike for the coming year. (To see O’Shaughnessy’s record, Click here.)
This stock holds a moderate buy rating in the street consensus, based on 3 recent reviews that include 2 buy and 1 wait. The average price target of $ 25.92 indicates growth potential of 38% from the current stock price of $ 18.83. (See Cushman & Wakefield’s stock analysis on TipRanks.)
ADR sponsored by LianBio (LINK)
The second title we’ll be looking at is a Chinese biotech company, LianBio. Unlike many other clinical-stage biotechnology researchers, this company is researching a diverse portfolio of new drugs in a wide range of fields. LianBio conducts clinical trials in the fields of respiratory, inflammatory and cardiovascular diseases, as well as in oncology and ophthalmology. The programs are undertaken in partnership with other world-class biopharmaceutical companies.
The three main programs of LianBio’s pipeline are in the areas of oncology, cardiovascular disease and ophthalmology. The main cardiovascular program is for mavacamten, first developed by Myocardia / Bristol Myers. Mavacamten has successfully completed a Phase 3 trial for the treatment of Obstructive Hypertrophic Cardiomyopathy (HCM) in the United States and a Phase 3 trial in China is expected to occur in 1Q22.
Infigratinib is leading the oncology program, indicated as a new treatment for gastric cancer and other solid malignancies. LianBio is working with BridgeBio Pharma on clinical trials and has three ongoing studies. The drug has already been approved for second-line cholangiocarcinoma in the United States
The company’s most advanced program in ophthalmology is TP-03, which was developed by Tarsus Pharmaceuticals for demodex blepharitis, an eye disease. Lian-Bio has reached an agreement with Tarsus for the rights to develop and commercialize the drug in China.
LianBio entered the US markets through an IPO on November 1 of this year. The shares opened to $ 16 each, exactly in the middle of the expected range, and the company raised $ 325 million on the sale of 20.31 million U.S. custodian shares. Stocks got off to a bleak start, falling 26% from the day one closing price.
However, Raymond James analyst Danish Leone considers the three main research programs – and in particular the mavacamten program – as important keys for the future prospects of LianBio. He highlights three points that investors should consider: “1) LianBio has a multi-tiered asset set with three drug candidates significantly reduced in risk, including mavacamten, TP-03 and infigratinib; 2) the company is expected to rapidly increase revenues from 2025 with the expected approval of mavacamten, our main expected revenue driver; and 3) the company has a diverse group of licensing partners, which gives it the flexibility to seek positive clinical outcomes while not relying too heavily on one indication or drug class.
Regarding mavacamten, Leone is optimistic about the company’s ability to market, writing, “[LianBio] is expected to start collecting revenue in 2024 at $ 45 million with an increase to ~ $ 320 million in 2025. “
These comments confirm Leone’s outperform (buy) rating on the stock, and his price target of $ 27 suggests a whopping 168% rise from the current stock price of $ 15.57. Leone’s is the first opinion on file for this biotechnology action. (To see Leone’s record, Click here.)
Other analysts also see a lot of benefits; Based on the average target of $ 24.4, stocks are expected to rise 142% over the next few months. With 2 additional purchases against 1 hold, the share benefits from a strong buy consensual note. (See the analysis of LianBio shares on TipRanks.)
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Disclaimer: The opinions expressed in this article are solely those of the analysts presented. The content is intended to be used for informational purposes only. It is very important to do your own analysis before making any investment.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.