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Raymond James: these 3 stocks are set to increase by at least 50%
In a recent note on the state of the stock markets, Raymond James stock strategist Tavis McCourt points out a number of policy factors that are playing a role in current market volatility; the situation is more complex, perhaps, than most of us are willing to admit. McCourt notes that the permutations of the SLR rule, the political dynamics in the Senate Banking Committee and the regulatory atmosphere in relation to the potential return on capital are influencing Fed movements and market reactions. “We believe that the Fed will do everything in its power to ensure the orderly trading of US Treasury bills and does not want to see concerns about the volatility and liquidity that occurred in the last week / during the course of the pandemic. We also believe that the Fed is not interested in an increase in yields, as the Treasury seeks to finance the next round of stimulus, “McCourt said. The strategist added:” Although the SLR conversation is a political and market issue for the Fed, we believe that any liquidation of treasury and / or stock markets linked to the debate is transitory and exaggerated. We are more focused on improving the economic environment, distributing vaccines and reflating. “With that in mind, our focus was on three stocks supported by Raymond James, with company analysts noting that each could rise more than 50% from current levels. Tickers through the TipRanks database, we found that The rest of Street is also on board, as each has a moderate or strong purchase consensus rating.Orasure Technologies (OSUR) We will start in the medical industry, a field that has made gains during the pandemic year. of its subsidiaries, is a producer of medical diagnostic tests and is known for developing rapid test kits for HIV, HEP-C and Ebola. Last year, the company created more than 150 jobs at its facilities in Bethlehem, Pennsylvania, as part of an effort to develop fast, home-made COVID test kits.The company’s product line has a wide variety of uses and is marketed to clinical laboratories, hospitals, doctors’ offices and health agencies p ublica ai in all the rld. As can be imagined, Orasure saw a rapid recovery from a decline in 1H20 revenue followed by strong gains. First-quarter revenue for the fourth quarter reached $ 62.9 million, a 27% year-over-year gain. This was driven by revenue from products and services, which grew 28% to reach $ 60.4 million. The LPA was positive, at 3 cents per share, which was a good turnaround in relation to the negative results of the first half of the year – but it fell 25% in relation to 4Q19. For the full year, Orasure reported $ 172 million in net revenue, an 11% year-over-year gain. Of this total, US $ 50 million came from the sale of oral fluid collection devices (cotton swabs) for COVID-19 test kits. In addition, the company has reported continued progress on its rapid COVID-19 antigen test and plans to submit prescription self-tests and professional-level tests to the US (Emergency Use Authorization) by the FDA by the end of the first quarter. Analyst Andrew Cooper, in his coverage of Raymond James shares, saw many reasons to like it, marking factors by numbers: “What we like: 1) Almost all revenue results. Orasure exceeded consensus sales estimates by 10% … 2) Timetable for shipping to USA from the concrete antigen. There is no misunderstanding about a presentation expected for this month, with studies completed and just more administrative work remaining … 3) More capacity expansion. Existing capacity schedules are on track, but management now plans to add another 50 million annual antigen capacity … ”To this end, Cooper places a $ 16 price target on inventory, implying an increase of 52% in a year and OSUR rates and Outperform (ie buy). (To see Cooper’s track record, click here) A solid reputation in the field and a clear path ahead is sure to attract a positive sentiment – and three Wall Street analysts have placed buy ratings on Orasure, making the analyst consensus a strong buy. The shares are quoted at $ 10.49, and the average price target of $ 18.67 is even more optimistic than that of Coopers, suggesting an increase of 78% in the next 12 months. (See the stock analysis of OSUR at TipRanks) Sol-Gel Technologies (SLGL) Staying in the medical field, we will shift the focus to a pharmaceutical company in a clinical stage. Sol-Gel is a biopharmaceutical with an interesting niche, developing topical medicines for the treatment of dermatoses. The company’s pipeline includes two proprietary formulations based on benzoyl peroxide, both creams: Epsolay, which is a treatment for papulopustular rosacea, and Twyneo, a treatment for acne. Both drugs had their NDAs (New Drug Orders) filed with the FDA, and the final approval decision is scheduled for 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 the SGT-210 is in the test phase I, with results expected for 1H21. SGT-210 is a potential treatment for palmoplantar keratoderma, a thickening of the skin on the palms and feet that is sometimes seen as a symptom of several rare diseases. In addition, Sol-Gel is working in collaboration with Perrigo as a North American manufacturer of generic labels for the company’s branded products. In 2020, the two companies signed four agreements, and now have 12 collaboration projects in total. Among the fans is Raymond James analyst Elliot Wilbur, who writes: “Given the great market opportunity in key pipeline products, coupled with the recent acceptance of NDA shipments, we maintain our strong buy rating for the shares of SLGL as we remain optimistic about short-term growth prospects and financial positioning. “The strong buy rating comes with a price target of $ 23, suggesting that SLGL has room to grow an impressive 156% next year. (To see Wilbur’s history, click here) Small cap biopharmas don’t always get a lot of attention from the analyst – they tend to go unnoticed by the radar. However, there are two reviews on file here and both are for Buy, making the consensus rating a Moderate Buy. SLGL’s shares are quoted at $ 9, with an average price target of $ 22, indicating a clue towards ~ 145% high for 2021. (See analysis of SLGL’s shares in TipRanks) PAE (PAE ) Let’s change gears and take a look at government support services. It is no secret that governments are major users of contract services companies, and PAE is a major provider of contract services to the US government and defense agencies. PAE operates on all continents and in 60 countries, offering a range of services, including analysis and training, intelligence, infrastructure operations, management and maintenance, logistical 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 transaction. The transaction brought the PAE’s shares to the NASDAQ exchange on February 10, 2020. 2021 started with some changes to the PAE’s contracts with the US government. In late January, the company lost a bid to renew a $ 125 million contract it had held with Customs and Border Patrol since 2009 – but at the beginning of the same month, PAE won $ 3.3. billion contract with the US Department of State. The contract with the state involves consular operations at diplomatic facilities in 120 countries. 5-star analyst Brian Gesuale, in his PAE coverage for Raymond James, observes the change in contracts and does not believe that it should cause problems for PAE. “PAE’s qualified pipeline is still around $ 40 billion and pending premiums north of $ 6 billion, which, when combined with the company’s 93% recompete earnings rate in 2020, gives us the confidence of that the CBP contract can be properly replaced ”, commented Gesuale. Turning to details about the state contract, Gesuale adds: “… this victory in the contract can add up to $ 110 to $ 125 million of high-margin annual revenue for the 2022 model. Overall, our estimates are going up and we continue to see PAE as one of the most attractive opportunities in the Government IT Services space. Although we expect the group to face slowing fundamentals and a potentially significantly lower reclassification of almost historically high ratings, the PAE should behave differently, as it accelerates organic growth … ”In line with these comments, the analyst puts a Outperform’s rating (ie Buy) in the stock, and its target price of $ 15 implies a 77% increase in one year. (To see Gesuale’s history, click here) PAE’s shares have a resounding “yes” on Wall Street. TipRanks’ analysis shows that out of 3 analysts, all 3 are optimistic. The average target price of $ 12.67 shows an upside potential of around 50%. (See the PAE stock analysis on TipRanks) To find good ideas for trading stocks with attractive valuations, visit TipRanks’ Best Stocks to Buy, a newly launched tool that gathers all the information about TipRanks shares. Disclaimer: The opinions expressed in this article are exclusively those of the analysts presented. The content should be used for informational purposes only. 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