Analysts see an ‘attractive entry point’ in these 3 stocks
What to do with today’s markets? Everything goes up and down. The major stock indices are showing strong gains over the past year, but have experienced recent setbacks. However, high volatility creates opportunities. During these pullbacks, investors have the opportunity to “buy low and sell high”, taking advantage of short-term declines in stock prices. There is risk, of course. Actions do not exist in a vacuum and the forces that pull them are subject to their own varying influences. Inflation concerns, sparked by federal spending plans, have raised bond yields, but the Federal Reserve has no intention of raising interest rates anytime soon. The financial picture is uncertain, and the only clarity is that, for now, stocks are offering the best rates of return. Wall Street analysts still see many, in their words, attractive entry points, stocks that are poised for these types of operations. We have used the TipRanks database to obtain the details of three of those actions. Let’s take a closer look. AbCellera Biologics (ABCL) Let’s start with AbCellera, which occupies a fascinating position in the biotech industry. The company is a leader in human antibody research, investigating the immune system to develop antibodies that will be used as the basis for new drugs and disease treatments. AbCellera, and its technology platform, have been involved in the fight against COVID-19 since last summer, investigating possible antibody treatments for the virus. Its Covid-19 drug, Bamlanivimab, developed in partnership with Eli Lilly, received an emergency use authorization from the FDA last November and has shown positive results in two phase 3 clinical trials. AbCellera is no stranger to research related to the pandemic. The company had a leadership role in the Pandemic Prevention Platform, part of DARPA’s Office of Biological Technology. AbCellera works on developing countermeasures for pandemic agents on an accelerated time scale. ABCL’s shares are new to the public market; the company made its IPO last December. On its first day of trading, ABCL jumped from an initial price of $ 20 to an afternoon high above $ 70 before closing the day at $ 58.90. The IPO raised more than $ 555.5 million in gross revenue. Since then, shares have fallen and ABCL shares are now down 55%. This opens up the “attractive entry point” seen by Credit Suisse analyst Tiago Fauth. “With the pace of biotech startups booming and a clear value proposition for partners (a high-throughput solution aimed at shortening the antibody discovery cycle and generating higher-probability drug candidates), we believe the pushback of stocks offers an attractive entry point for investors looking to capitalize on the disruptive potential of a leading technology-driven drug discovery platform, ”said Fauth. Getting into the details, the Credit Suisse analyst adds: “We believe ABCL offers exceptionally strong thesis fundamentals that stand out clearly from some of the comps that have lagged behind in recent days, including (1) the visibility of the generation substantial short-term cash flow from bamlanivimab and no overfunding, (2) an increasingly validated and differentiated discovery platform with a large TAM, and (3) an underrated LT business model option. ” In the end, Fauth gives ABCL’s stock a target price of $ 54, suggesting a robust upside potential of 103% by year-end. Its bullish target supports its outperformance rating (ie buy). (To view Fauth’s track record, click here) Sometimes all Wall Street analysts agree, and that’s the case here. ABCL has 5 recent reviews and they are all Buy, giving the stock a rating. Strong Buy consensus ion. The stock is trading at $ 26.55 with an average target of $ 55.80, which is ~ 107% up in one year. (See ABCL stock analysis in TipRanks) Ionis Pharmaceuticals (IONS) The next ‘hot’ stock we’re seeing is Ionis Pharmaceuticals, a California-based clinical research firm that focuses on RNA-targeted therapies. These drugs are designed to interact with the patient’s own RNA, generating a precise treatment that interrupts disease processes. Ionis has three approved drugs and an active pipeline of candidates in development. The approved drugs are Spinraza, which is used to treat spinal muscular dystrophy; Tegsedi, used to treat ATTR neurodegenerative disease; and Waylivra, which treat genetically caused triglycerides in the blood. Of the three drugs, Spinraza has the highest sales and generated $ 2 billion in worldwide revenue last year. More than 11,000 patients were receiving Spinraza at the end of 4Q20. The other two approved drugs, Tegsedi and Waylivra, saw product sales increase by 65% from 2019 to 2020. Strong product sales enabled Ionis to end 2020 with $ 1.9 billion in cash on hand. The stock is down 30% from its recent peak in January, but Oppenheimer five-star analyst Kevin Degeeter believes that the “current valuation offers an attractive entry point for investors with a 9-month outlook. .. “Expanding this perspective, adds the analyst. , “We believe that the simplification of the IONS portfolio and the transition from the partnership to investing in wholly owned pipeline programs offers a catalyst to unlock the value of the RNAi platform. We expect IONS shares to enjoy multiple expansion. ongoing as the company diversifies Spinraza royalty revenue into internal orphan drug therapies, including TTR. There could be advantages for our perspective if IONS identifies creative structures to unlock the value of its broad portfolio of programs associated with Biogen, Pfizer, Roche and Novartis “. Based on the above, DeGeeter rates IONS Share Outperform (ie Buy) and sets a price target of $ 63 which implies room for a 49% increase in one year. (To view DeGeeter’s history, click here.) Do I think about the street? Looking at the consensus breakdown, the opinions of other analysts are more dispersed. 6 buys, 3 holds, and 2 sales add up to a moderate buy consensus. Furthermore, the average price target of $ 56.70 indicates a potential upside of 33%. IONS Stock Analysis at TipRanks) Equinix (EQIX) From biopharma and biotech, we will shift gears and take a look at digital technology. Equinix is a leader in the colocation data center market, operating more than 200 data centers in 25 countries in the Americas. , Europe, the Middle East and Asia. The company operates as a real estate investment trust, owning and managing the data centers, which are rented out to commercial clients. As you can imagine, a major center owner / operator is well positioned to reap the benefits during the COVID-19 pandemic, and Equinix did. However, it might be more fair to say that the company’s model was immune to the virus. Equinix’s business has been growing for 18 years, and the crown crisis couldn’t affect that. In 4Q20, the company posted its 72nd consecutive quarter of sequential revenue growth. The top line for 2020 was $ 5.99 billion, up 8% year-over-year. Acquisition costs and losses due to debt extinction reduced revenues by 27% year-on-year. Looking ahead, the company projects revenue in the range of $ 6.58 billion to $ 6.64 billion, for another 10% to 11% annual gain. Equinix continues to expand and earlier this month launched plans for a $ 3 billion hyperscale program, funded in part by joint venture partners. The project will increase the company’s ability to meet the demands of its 10,000 customer base. Sami Badri, in his coverage of these stocks for Credit Suisse, writes about the overall situation at Equinix. “[As] As we head into a post-COVID world, digital leaders will remember the importance of minimizing time to market and the ability to rapidly alter workload capabilities, both of which are facilitated through the use of the Equinix Metal Platform … from its partner solutions EQIX will seek to complement its existing computing, networking and interconnection services to offer an expanded choice of infrastructure-as-a-service solutions, which will only increase the appeal of EQIX among data center customers seeking a long-term solution. to better serve your end consumers. ”Badri wrote. Regarding the value of the shares for investors, Badri adds: “EQIX trades below the DLR of large-cap pairs according to consensus estimates, also a recent new development. We believe that the recent pullback in EQIX’s trading price makes this a very attractive entry point. “Overall, the analyst gives this stock a Best Performance rating (ie Buy), and its target price. of $ 942 is a 43% increase over the next 12 months. (To view Badri’s track record, click here) Who doesn’t love a market leader with a revenue growth record of nearly two decades? Wall Street analysts are unanimous here, giving EQIX 13 Buy reviews for a Strong Buy consensus rating. The stock is selling for $ 660.23, and its average price target of $ 838.92 implies a potential one-year upside of 27% from that level. (See EQIX Stock Analysis on TipRanks) To find good ideas for trading stocks with attractive valuations, visit TipRanks Best Stocks to Buy, a recently launched tool that brings together all the insights is from TipRanks stock. Disclaimer: The opinions expressed in this article are solely those of prominent analysts. The content is intended to be used for informational purposes only. It is very important to do your own analysis before making any investment.