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JPMorgan bet on these 3 stocks; See more than 50% positive potential
It’s time to check out the macro image, to get an idea of where the markets are heading in the coming months. This is what a JPMorgan global research team, led by Joyce Chang, has been doing. The JPM team begins by looking at the liquidation of U.S. Treasury bonds last week, raising yields as investors acted in response to inflationary fears. However, the increase in bond yields stabilized on Friday, and Chang’s team does not believe that inflation is the big bogeyman it appears to be; his team sees a combination of economic growth and fiscal stimulus creating a virtuous circle of consumer spending, fueling more growth. They write: “Our global economy team is now predicting that the nominal US GDP will grow by an average of around 7% this year and next year, as targeted measures have been successful in addressing COVID-19 and economic activity is not being harmed. Global growth will exceed 5% … ”What this means, in JPM’s view, is that next year should be good for stocks. Interest rates are expected to remain low, in the company’s estimate, while inflation is expected to moderate as the economy returns to normal. JPM’s stock analysts have been following the strategy team and looking for the stocks they consider winning in the next 12 months. Three of his recent picks are an interesting batch, with strong buying ratings from the analyst community and upward potential of more than 50%. We used the TipRanks database to get the details about them. Let’s take a look. On24 (ONTF) The first JPM choice we look at here is On24, the online streaming service that provides third parties with access to personalized, scaled network events. In other words, On24 makes its streaming service available for other companies to use when setting up interactive features, including webinars, virtual events and multimedia experiences. The San Francisco-based company has a base of more than 1900 corporate users. On24 customers interact online with more than 4 million professionals every month, for more than 42 million hours every year. As can be imagined, On24 saw an increase in customer interest and business over the past year, as virtual offices and teleworking situations expanded – and the company now uses this as a basis for going public. On24 held its IPO last month and joined the NYSE on February 3. The opening was a success; 8.56 million shares were placed on the market at $ 77 each, well above the starting price of $ 50. However, the shares have since suffered and dropped 36%. However, Sterling Auty of JPM believes that the company is well positioned to capitalize on current trends. “We believe that the COVID-19 pandemic has forever changed the face of B2B marketing and sales. He forced companies to move most of their sales lead generation into the digital world, where On24 is typically seen as the best webinar / webcast provider. ”The 5-star analyst wrote. “Even after the pandemic, we expect the marketing movement to be hybrid, with digital and face-to-face being equally important. This should drive the adoption of solutions similar to On24, and we expect On24 to capture a significant portion of that opportunity. ”In line with these optimistic comments, Auty started covering the shares with an Overweight rating (ie Buy), and its target price of $ 85 suggests that there is room for a 73% rise in the next 12 months. (To see Auty’s track record, click here.) Sometimes a company is so solid and successful that Wall Street analysts line up right behind it – and that’s the case here. Strong Buy’s analyst consensus rating is unanimous, based on 8 buyer-side reviews published since the shares went public just over a month ago. The shares are currently trading for $ 49.25 and their average target price of $ 74 implies a 50% increase from that level. (See On24’s stock analysis at TipRanks.) Plug Power, Inc. (PLUG) And moving on to the reusable energy sector, we will see a JPM ‘green energy’ choice. Plug Power designs and manufactures hydrogen energy cells, a technology with great potential as a possible replacement for traditional batteries. Hydrogen energy cells have potential applications in the automotive sector, such as energy units for alternative fuel cars, but also in virtually any application involving energy storage – home heating, portable electronics and backup power systems, to name a few. just a few. Last year, PLUG’s shares saw a tremendous increase, rising more than 800%. The shares received an additional boost after Joe Biden’s presidential election victory – and his platform promises to encourage ‘Green Energy’. But the stock has dropped dramatically recently, as did many overgrown growth names. The poor results of 4Q20 also help to explain the recent settlement. Plug reported a profound loss of $ 1.12 per share, much worse than the expected 8 percent loss, or the 7 percent loss reported in the previous year’s quarter. In fact, PLUG has never reported positive gains. This company is supported by the quality of its technology and the potential of that technology for adoption as the industry moves towards renewable energy sources – but we are not there yet, despite advances in that direction. The drop in stock prices makes PLUG an attractive proposition, according to Paul Coster, an analyst at JPM. “In the context of the company’s many long-term growth opportunities, we believe that the shares are currently attractively priced, ahead of potential positive catalysts, which include additional gains from ‘pedestal’ customers, partnerships and JVs that enable the company enter new geographies and applications for the final market with quick and modest commitment of capital ”, said the analyst. “At the moment, PLUG is a stock of history, appealing to thematic investors, as well as generalists looking for exposure to the growth of Renewable Energies and Hydrogen in particular.” Coster’s optimistic comments come with an update to the PLUG rating – from Neutral (ie Keep) to Overweight (Buy) – and a target price of $ 65 that indicates a possible 55% rise. (To see Coster’s history, click here.) Plug Power also has a lot of support among Coster’s colleagues. 13 recent analyst analyzes are divided into 11 purchases and 1 wait and sale, each, all aggregated to a strong purchase consensus rating. PLUG shares sell for $ 39.3 and have an average target price of $ 62.85, which suggests a potential 60% increase in one year. (See Plug’s stock analysis at TipRanks.) Orchard Therapeutics, PLC (ORTX) The last JPM stock choice we will see is Orchard Therapeutics, a biopharmaceutical research company focused on the development of genetic therapies for the treatment of rare diseases . The company’s goal is to create curative treatments based on the genetic modification of blood stem cells – treatments that can reverse the causal factors of the target disease with a single dose. The company’s pipeline features two drug candidates who have received approval in the EU. The first, OTL-200, is a treatment for metachromatic leukodystrophy (DLM), a serious metabolic disease that leads to loss of sensory, motor and cognitive functioning. Strimvelis, the second approved drug, is a gene therapy based on gammaretroviral vectors and the first ex vivo autologous gene therapy to receive approval from the European Medicines Agency. It is a treatment for adenosine deaminase deficiency (ADA-SCID), when the patient does not have a related stem cell donor. In addition to these two EU-approved drugs, Orchard has ten other drug candidates at various stages of the process, from pre-clinical research to early-stage testing. Anupam Rama, another 5-star analyst at JPM, delved deep into Orchard and was impressed by what he saw. In his inventory coverage, he notes several key points: “The maturation of data on various indications in rare genetic diseases continues to decrease the risk of the broader ex vivo autologous gene therapy platform, both from an efficacy / safety perspective. .. Important MLD opportunities (including OTL-200 and other drug candidates) have sales potential in the range of approximately $ 200-400 million … It is important to note that the overall benefit / risk profile of Orchard’s approach is viewed favorably in the eyes of doctors. At current levels, we believe that ORTX’s shares sub-reflect the risk-adjusted potential of the pipeline … ”The high sales potential here leads Rama to classify the shares as Outperform (Buy) and to set a price target of $ 15, which implies a robust recovery potential of 122% in the next 12 months. (To view Rama’s history, click here.) Wall Street generally agrees with the JPM on this point as well. ORTX shares have 6 buy reviews, for a unanimous consensus rating by the strong buy analyst, and the average price target of $ 15.17 suggests an increase of 124% from the current trading price of $ 6, 76. (See Orchard’s stock analysis at TipRanks.) Disclaimer: The opinions expressed in this article are exclusively those of the analysts presented. The content should be used for informational purposes only. It is very important to do your own analysis before making any investment.