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3 Shares traded at minimum prices; Analysts say ‘buy’
A new year, a new addition to the stock portfolio – what can make more sense than that? The right time to buy, of course, is when the shares are listed at rock bottom. Buying low and selling high may be a little trivial, but it is true, and the truth has staying power. But markets are on the rise. The NASDAQ rose 43% in 2020, and the S&P 500 showed a 16% gain. With such a market environment, finding stocks in crisis is more difficult than it looks. That’s where Wall Street professionals can lend a hand. We used the TipRanks database to find three stocks that fit a profile: a share price that has fallen by more than 30% in the past 12 months, but with the potential for appreciation of at least two digits, according to analysts. Not to mention that each won a Moderate or Strong Purchase consensus rating. Esperion (ESPR) We will start with Esperion, a company specializing in therapies for the treatment of high levels of low density lipoprotein cholesterol – an important factor that contributes to heart disease. The company’s main product, bempedóico acid, is now available in tablet form under the brands Nexletol and Nexlizet. In February 2020, Nexletol and Nexlizet were approved as oral treatments to reduce LDL-C. Bempedóico acid remains in clinical trials for its effectiveness in reducing the risk of cardiovascular disease. The trial, called CLEAR Outcomes, is a large-scale, long-term study, tracking more than 14,000 patients with first-line data expected in the second half of 2022. The study covers 1,400 locations in 32 countries around the world. peaked last February, after FDA approvals, but since then, the stock has plummeted. The shares have fallen 65% since their peak. Along with the drop in share value, the company showed a drop in revenue from the second to the third quarter, with sales falling from $ 212 million to $ 3.8 million. Since the third quarter report, Esperion has announced the price of an offer of $ 250 million of senior subordinated notes, at 4%, due in 2025. The offer gives the company a boost in available capital to continue working on its development pipeline and its marketing efforts for bempedóico acid .Chad Messer, covering ESPR for Needham, sees the banknote offer as a net positive for Esperion. “We believe that this cash position will be sufficient to sustain Esperion until 2021 and profitability in 2022 … We believe that this financing should help to dispel concerns about the Esperion balance sheet. Despite a challenging launch for NEXLETOL and NEXLIZET, product growth continued in 3Q against a backdrop of contraction in the LDL-C market. This growth trajectory suggests potential for rapid acceleration when conditions improve, “Messer wrote. To that end, Messer classifies ESPR shares as Strong Buy and its $ 158 target price suggests that the stock has room for big growth this year – up to 481% of current levels. (To view Messer’s history, click here) Overall, Esperion has 6 recent reviews recorded, with a split of 5 purchases and 1 waiting to give stocks a rating of strong buy from the analyst consensus. Shares, trading at $ 27.16, have an average target price of $ 63.33, implying an increase of 133% in one year. (See ESPR stock analysis at TipRanks) Intercept Pharma (ICPT) Liver disease is a serious health threat, and Intercept Pharma is focused on developing treatments for some of the most dangerous chronic liver diseases, including non-alcoholic steatohepatitis (NASH) and primary biliary cholangitis (PBC). research pipeline based on FXR, a regulator of bile acid pathways in the liver system. FXR action affects not only bile acid metabolism, but also glucose and lipid metabolism, and inflammation and fibrosis around the liver. The main compound, obeticolic acid (OCA), is an analogue of CDCA bile acid and, as such, may play a role in the FXR pathways and receptors involved in chronic liver disease. The treatment of liver disease through FXR biology has direct applications for PBC, and is showing promise in the treatment of NASH complications. ICPT’s stock fell sharply last summer when the FDA rejected the company’s request to approve OCA for the treatment of NASH-related liver fibrosis. This delays the potential entry of the drug into a profitable market; there is no current treatment for NASH, and the first drug to be approved will have the leadership in reaching a market estimated at $ 2 billion to $ 5 billion in potential annual sales. The effect on stocks is still felt, and the ICPT remains at its 52-week low. In reaction, in December 2020, Intercept announced major changes in top-level management, with CEO and President Mark Pruzanski announcing his resignation starting January 1 this year. He is succeeded by Jerome Durso, the company’s former COO, who will also take up a position on the Board of Directors. Pruzanski will remain as a director and occupy a director position on the company’s board. Piper Sandler analyst Yasmeen Rahimi takes a deep dive into Intercept’s continued efforts to expand OCA orders and resubmit its new drug order to the FDA. She sees the leadership transition as part of those efforts and writes: “[We] believe that Dr. Pruzanski’s dedication to transforming the liver space is still strong, and that he will continue to guide ICPT’s progress as an adviser and member of the Council. In addition, we have had the pleasure of working closely with Jerry Durso and believe that he will transform the company and lead ICPT’s success in growing the PBC market and on the path to the potential approval and commercial launch of OCA in NASH. ”Rahimi takes a long-term bullish position at the ICPT, giving the stock an Overweight rating (ie Buy) and a target price of $ 82. This figure indicates an impressive 220% increase in the next 12 months. (To see Rahimi’s history, click here) Wall Street is a little more divided about the pharmaceutical industry. ICPT’s moderate purchase consensus rating is based on 17 reviews, including 8 purchases and 9 retentions. The shares are quoted at $ 25.82, and the average target price of $ 59.19 suggests a potential increase of 132% in the next 12 months. (See ICPT stock analysis at TipRanks) Gilead Sciences (GILD) Gilead had a year like a firework – fast up and down. The gains occurred in 1H20, when it looked as if the company’s antiviral remedy would become the main treatment for COVID-19. In November, however, although the remdesivir was approved, the World Health Organization (WHO) was recommending against its use, and the COVID vaccines now on the market made remdesivir irrelevant to the pandemic. That was just one of Gilead’s recent headwinds. The company has been working, together with the Galapagos (GLPG), on the development of filgotinib as a treatment for rheumatoid arthritis. Although the drug received approval from the EU and Japan in September 2020, the FDA denied approval and Gilead announced in December that it was halting drug development efforts in the United States. Even so, Gilead maintains a diverse and active line of research, with more than 70 candidates for research at various stages of the development and approval process for a wide range of diseases and conditions, including HIV / AIDS, inflammatory and respiratory diseases, diseases cardiovascular diseases and hematology / oncology. On a positive note, Gilead posted third-quarter earnings above estimates, with first-rate revenue of $ 6.58 billion, exceeding the forecast by 6% and growing 17% year over year. The company updated its 2020 guidance on product sales from $ 23 billion to $ 23.5 billion. Among the bulls is Oppenheimer analyst Hartaj Singh, who gives GILD shares an Outperform rating (ie Buy) and a target price of $ 100. Investors can pocket a 69% gain if the analyst’s thesis materialize. (To see Singh’s history, click here) Supporting his position, Singh writes: “We continue to believe in our thesis of (1) a reliable remedial / other medication against SARS-CoV outbreaks, (2) a business basic (HIV / oncology / HCV) growing with a low digit in the next two years, (3) operational leverage providing greater profit growth and (4) a dividend yield of 3-4%. ”What does the rest of the street think? Looking at the breakdown of consensus, the opinions of other analysts are more dispersed. 10 purchases, 12 retentions and 1 sale add up to a moderate purchase consensus. In addition, the average price target of $ 73.94 indicates a potential 25% increase from current levels. (See the GILD stock analysis at TipRanks) To find good ideas for trading defeated stocks with attractive valuations, visit TipRanks ‘Best Stocks to Buy, a newly launched tool that brings together all of TipRanks’ stock perceptions. Disclaimer: The opinions expressed in this article are only 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 investments.