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Analysts see these 3 stocks as an attractive entry point
What to do with markets today Everything is up and down. The major stock indices posted strong gains over the past year, but have recently declined. However, high volatility offers opportunities. During these withdrawals, investors have the opportunity to “buy cheap and sell high” and take advantage of short-term price declines. There is of course a risk. Stocks don’t exist in a vacuum, and the forces that pull them are subject to their own varied influences. Inflation concerns, fueled by federal spending plans, have pushed bond yields higher, but the Federal Reserve has no plans to hike rates anytime soon. The financial landscape is uncertain – and the only thing that’s clear is that stocks offer the best returns right now. Wall Street analysts still see many attractive entry points in their words, stocks that are prepared for this very type of trade. We used the TipRanks database to get the details on three such stocks. Let’s take a closer look. AbCellera Biologics (ABCL) We’re starting with AbCellera, which has a fascinating position in the biotech industry. The company is a leader in human antibody research and the immune system to develop antibodies that form the basis of new drugs and disease treatments. AbCellera – and its technology platform – have been involved in the fight against COVID-19 since last summer and are researching possible antibody treatments for the virus. The Covid-19 drug Bamlanivimab, developed in collaboration with Eli Lilly, was approved for emergency use by the FDA last November and has shown positive results in two phase 3 clinical studies. AbCellera is no stranger to pandemic research. The company had a leading role in the Pandemic Prevention Platform, which is part of the DARPA Biological Tech Office. AbCellera is working to develop countermeasures against pandemic pathogens in an accelerated timeframe. ABCL shares are new to the public market; The company went public last December. On the first day of trading, ABCL rose from an opening price of $ 20 to an afternoon high of over $ 70 before closing the day at $ 58.90. The IPO generated gross proceeds of over USD 555.5 million. Since then, the stock has fallen and ABCL shares are now down 55%. This opens up the “attractive entry point” for Credit Suisse analyst Tiago Fauth. “Given the pace of new business startups in high-level biotechnology and a clear value proposition for partners (high-throughput solution to shorten the antibody discovery cycle and generate drug candidates more likely), we believe the stock pull-back is an attractive entry point. who want to use the disruptive potential of a leading technology-based platform for drug discovery, ”said Fauth. Going into the details, the Credit Suisse analyst adds, “We believe that ABCL offers uniquely strong thesis bases that stand out from some of the compositions that have lagged in recent days, including (1) visibility of significant short-term cash flow -Generated from Bamlanivimab and no funding overhang, (2) a differentiated and increasingly validated discovery platform with a large TAM and (3) an underestimated option of the LT business model. “To that end, Fauth gives ABCL shares a price target of $ 54, which indicates robust upside potential of 103% by year-end. Its bullish target supports its outperform (i.e. buy) rating. (To see Fauth’s track record, click here.) Sometimes Wall Street analysts agree, and that is the case here. ABCL has 5 recent ratings and all for Buy, giving the stock a strong buy consensus rating. The shares trade for $ 26.55 with an average target of $ 55.80, which is an upward trend of ~ 107% for a year. (See ABCL stock analysis on TipRanks.) Ionis Pharmaceuticals (IONS) The next “attractive” stock to look at is Ionis Pharmaceuticals, a California-based clinical research company focused on RNA-targeted therapeutics. These drugs are designed to interact with the patient’s own RNA and provide precise treatment that disrupts disease processes. Ionis has three approved drugs and an active pipeline of candidates in development. The approved drugs are Spinraza for the treatment of muscular dystrophy of the spine. Tegsedi for the treatment of the neurodegenerative disease ATTR; and Waylivra, which treat genetic triglycerides in the blood. Of the three drugs, Spinraza has the highest sales, posting worldwide sales of $ 2 billion last year. More than 11,000 patients received 20 Spinraza at the end of the fourth quarter. For the other two approved drugs, Tegsedi and Waylivra, product sales increased 65% from 2019 to 2020. Thanks to strong product sales, Ionis closed 2020 with a cash on hand of $ 1.9 billion. The stock has fallen 30% since its most recent high in January, but Oppenheimer’s 5-star analyst Kevin Degeeter sees “current valuation as an attractive entry point for investors with an outlook of more than 9 months …” “We see the simplification of the IONS portfolio and the transition from partnership to investment in 100% pipeline programs as a catalyst for unlocking the value of the RNAi platform. We expect IONS shares to expand steadily multiple times as the company diversifies sales away from Spinraza royalties towards in-house orphan drug therapies, including TTR. Our outlook could be positive if IONS identifies creative structures to capitalize on the value of its broad pipeline of partner programs with Biogen, Pfizer, Roche and Novartis. “Based on the above, DeGeeter rates IONS shares as outperforming (i.e. buying) and setting a price target of $ 63, which implies room for an uptrend of 49% for a year. (To see DeGeeter’s track record, click here.) What The Rest of the Means If you look at the consensus breakdown, other analysts’ opinions are more diverse. 6 buys, 3 holds and 2 sells result in a moderate buying consensus. Additionally, the average target price of $ 56.70 indicates upside potential of 33%. (See IONS stock analysis on TipRanks) Equinix (EQIX) From biopharma and biotech, we’re switching gears and taking a look at digital technology. Equinix is a leader in the colocation data center market, operating over 200 data centers in 25 countries across the Americas, Europe and the Middle East and Asia. The company operates as a real estate investment trust and owns and manages the data centers that are rented to business customers. As you can imagine, doing so would a major data center owner / operator find themselves well positioned to reap ben efits during the COVID-19 pandemic – and Equinix did. However, it might be fairer to say that the enterprise model has been shown to be immune to the virus. Equinix’s business has been growing for 18 years, and the corona crisis has failed to contain it. In the fourth quarter of 20, the company posted sequential revenue growth for the 72nd straight quarter. Return on sales for 2020 was $ 5.99 billion, an 8% increase over the previous year. Acquisition costs and losses due to debt relief depressed income by 27% compared to the previous year. Looking ahead, the company predicts revenues in the range of $ 6.58 billion to $ 6.64 billion, which translates into another 10 to 11 percent annual profit. Equinix continues to expand and earlier this month announced plans for a $ 3 billion hyperscale program, funded in part by joint venture partners. The project will improve the company’s ability to meet the needs of its 10,000-strong customer base. Sami Badri writes about the general situation of Equinix in his coverage of this stock for Credit Suisse. “[As] Moving into a post-COVID world, digital leaders are being reminded of the importance of minimizing time to market and changing workload features quickly. Both are made easier by using the Equinix Metal Platform … Through its partner solutions EQIX will seek to complement its existing connectivity, network and computing services to offer an expanded range of Infrastructure as a Service solutions that leverage the appeal of Increase EQIX for data center customers looking for a long-term solution to provide the best possible service to their end users. Badri wrote. Regarding the value of the stock to investors, Badri added, “EQIX is also a new recent development trading under the large-cap peer DLR based on consensus estimates. We believe the recent drop in EQIX’s trading price makes this a very attractive entry point. “Overall, the analyst rates this stock as outperforming (ie buying) and his target price of $ 942 implies an uptrend of 43% over the next 12 months. (To see Badri’s track record, click here.) Who doesn’t like a leader with nearly two decades of sales growth? Wall Street analysts agree on this and give EQIX 13 Buy ratings for a strong buy consensus rating. The shares sell for $ 660.23, and their average price target of $ 838.92 implies upside potential of 27% for a year from that level. (See EQIX stock analysis on TipRanks.) To find great ideas for trading stocks at attractive valuations, visit TipRanks ‘Best Stocks to Buy, a newly launched tool that brings together all of TipRanks’ stock insights. Disclaimer: The opinions expressed in this article are solely those of the presented analysts. The content is intended to be used for informational purposes only. It is very important that you do your own analysis before making any investment.
